I have to laugh…  Early in my use of standing orders I had my best rate for low amt, low DTI, AA borrowers set at 9.40%.  (I didn’t have any rhyme or reason for 9.4% it just seemed “right”.)  Sure enough, the very first loan found by my standing order closed at exactly 9.4%.  This one loan was my genesis for starting this blog.  Why 9.4%?  Was this a good rate?  Should I have done better?  The conclusion I came to… I needed to be more rigorous because that interest rate is WAY too low and the seed of RateLadder.com was born.

It turns out, that this loan is now a payoff in progress.  Sweet.  I will have made 9.4% on $50 while it was in the loan.  Not to shabby… ~4.4% better than I would have made leaving my money in the bank.

Flash forward, I will never have another loan at a rate this low.  My bare minimum interest rate is currently 15% for this and similarly attractive listing candidates.  Sure, I will have more defaults, but with a portfolio in place that is aging nicely hopefully I can weather any storm with a positive IRR.

I will remember this loan fondly as the seed of RateLadder.com, but particularly because the borrower repaid the loan.  Thank You!

Happy Lending!

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