Borrowers and lenders have opposite desiresBorrowers typically want to make a small down payment, get a low interest rate, not pay any points or late charges, even if their credit is terrible. Lenders want the opposite of course. A high yield with a low risk paid by a borrower with perfect credit. Sometimes there is no middle ground and the loan just can't be made. For example, would you lend someone with terrible credit $100,000 to buy a home worth $100,000 (no down payment) even if the yield was 20% per year? it's not what you're promised but what you collect that matters.
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