Are Note Yields affected by the cost to maintain the note yearly?

[Joe Daigle]

Doesn't the cost of holding a note, change the yield that's projected? (i.e. monthly servicing costs etc.)  And, if so, how do you remedy that?

Thanks for any advise.

[Chris Seveney]

When calculating a yield (which is a best-guess hypothetical), you will want to include all costs you may incur. One aspect I see investors make all the time is they see a $400/mo P&I payment and say "oh I am getting $400/month" - no you are not. You are paying servicing fees which reduce it to $375 +/-. You also have other costs of business like boarding costs etc. which need to be accounted for. So yes the costs do impact your yield which is why they should be included in your calculations.