Year-End Statement / Year End Statement

Mortgage report sent to borrowers at the end of each year specifiying:

• Balance
• Interest Rate
• Payment History
• Escrow Account History
• Payment Status
• Changes That Took Place

Yield

Yield is a return on investment, expressed as a percentage. For example, you invested $20.000 in a Groko Company. Your return was $23.000. In that case yield is:

20.000 / 23.000 * 100 = 86%

100% - 86% = 14%

Yield is 14%

Yield Curve

To understand yield curve, you must know what a yield is.

Yield: Yield is a return on investment, expressed as a percentage. For example, you invested $20.000 in a Groko Company. Your return was $23.000. In that case yield is:

20.000 / 23.000 * 100 = 86%

100% - 86% = 14%

Yield is 14%

Yield Curve: the relationship between yield and maturity date(when get the funds back) of the investment.

Yield to Maturity / YTM

Estimated returns expected with the maturity(when you get the funds back) of an investment

Yield-Spread Premium / Yield Spread Premium

Compensation given to the mortgage broker for selling higher interest rate to the borrower than required by lender. For example, lender requires 6% interest on a 10 year fixed rate mortgage. Brokers gets a borrower to sign up for 7%. Broker will receive compensation from lender for getting borrower into higher rates.