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!

If you liked this article, vote for it on del.icio.us and stumbleupon.


Categories:

Loan Review, Prosper.com

Related Articles

• UnderAppreciated Listings RSS Feed Update — Greater than $3MM in Fundable by Rate, Amount, and DTI Listings Expired

• Does Prosper’s Public Data Allow Loan to Listing Correlation?

• New Loan Funded — payoff current loan and new invest on business — $25,000 at 29.00% — E Credit — DTI 37%

• UnderAppreciated Listings RSS Feed Update

• Loanio in “Final Pre-Beta Testing”