First Funding Blog

Is the interest on the loan and the interest charged by warehouse lender the same thing?

The interest on the mortgage loan principal will accrue per the terms set forth in the loan documents executed by the borrower at closing. The interest on the warehouse advance principal will accrue per the terms of the warehouse financing agreements executed between the mortgage originator and the warehouse lender. The mortgage loan documents executed by the borrower and the warehouse financing documents are separate and do not involve the same parties. It is possible that the interest accrual amounts could be identical, but they are not the same.