One-Pay MF Reduction Question

I am thinking of doing a one-pay on an X5D and was wondering if the current MF reduction for one-pays is still 0.0008, and is this reduction still applied to the standard rate? Also, where are standard rates this month? Thanks in advance!

Originally Posted by fq

I am thinking of doing a one-pay on an X5D and was wondering if the current MF reduction for one-pays is still 0.0008, and is this reduction still applied to the standard rate? Also, where are standard rates this month? Thanks in advance!

I thought that the one pay was a discount off of the .00145 rate. But when I went to the dealer, I found out that it wasn't. I think that the standard rate is something like .0018 or .0019. Compared to the current .00145 rate, the one-pay makes no financial sense. It results in a negative IRR vs doing max MSD's. If the one-pay was .0008 off the .00145, then one-pay would be a good deal. But its not, so just do the max MSD's for the greatest financial benefit.

Thanks, I agree it does not make financial sense if it is off of 0.0018/9. I was hoping the standard rate would be lower.

Originally Posted by tarf

I thought that the one pay was a discount off of the .00145 rate. But when I went to the dealer, I found out that it wasn't. I think that the standard rate is something like .0018 or .0019. Compared to the current .00145 rate, the one-pay makes no financial sense. It results in a negative IRR vs doing max MSD's. If the one-pay was .0008 off the .00145, then one-pay would be a good deal. But its not, so just do the max MSD's for the greatest financial benefit.