Some Economics of Wholesale Lending: Yet another Reason Why it?s a dead man walking.

With permission, I've done some number crunching on an actual deal that actually closed.  These borrowers were not risky, AAA+ borrowers, low LTV on  great house here in central Ohio.  Over the summer, they chose to refinance.  Since they were strong borrowers, the loan was clear to close before locking.  We chose to close their 15 year fixed loan at 6.375, which was a decent rate at the time.   Our price was 102.8 on a $270,000 loan.  We used our some of this to pay closing costs, and the rest was profit. This means that the lender we used paid us $7,560 in real money to close this loan for the clients.   They had the original 6.375 loan for 138 days.  This means that ALL the interest that w