1 / 11

How to Price a Loan

How to Price a Loan. Useful Pricing Information. Rate guide pricing assumes 1.000 origination is being collected. If the borrower is not being charged then take -1.000 away from the rate guide pricing.

iden
Download Presentation

How to Price a Loan

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. How to Price a Loan

  2. Useful Pricing Information • Rate guide pricing assumes 1.000 origination is being collected. If the borrower is not being charged then take -1.000 away from the rate guide pricing. • Loan size adjusters are listed on page 1 and 2 of the rate guides and apply to all products except FHA. FHA products do not receive loan size adjusters. • 60 day pricing is -.375 worse than 45 day pricing on all products that allow 60 day pricing. • Extended lock options are located on page 2 of the rate guides and also apply to most Government 30 programs. Lock Desk Hours: Weekdays 8:30 am – 8:30 pm EST Weekends 8:30 am Friday – 8:00 pm EST Sunday

  3. All pricing assumes 1.000 origination is being collected. Ex. FHA 30 3.500% 30 days not collecting any points (0 & 0) and a FICO score of 690. 100.125 Rate Guide Price -1.000 No Origination +.250 FHA Improvement 99.375 Final Price (-.625 shortage)

  4. EXTENSIONS • The extension policy is located at the bottom of page 1 of the daily rate guides. • Extension requests should be sent to Rate Lock from PCL and cannot expire on a weekend or holiday. • In the extension request include the specific number of days and if it will be at a cost to the borrower. • The cost to extend the first time is .02 per day and a second extension is .03 per day. The combined total cannot exceed 30 days. A 3rd extension request at .03 will be granted if a firm close date is confirmed by the closer.

  5. Page 2 of the rate guide has Conforming Fixed products (<=$417,000) Extended Lock Option

  6. Page 3 contains High Balance and Non-Conforming Fixed and ARM products

  7. Page 4 contains the Conforming and High Balance pricing adjustments. These apply to the programs listed on page 2 and page 3 (excluding Non-Conforming) Pricing Example: C30, 3.750%, $200,000, SFR, purchase, 720 FICO, 80/90, 30 day lock, points 0 & 0. 99.750 Rate Guide Price -1.000 No Origination -.500 FICO -.750 CLTV 97.500 Final Price (-2.500 shortage)

  8. Page 4 contains HomePath pricing and pricing adjustments. There cannot be a shortage with these programs. Pricing Example: 30 YR, 4.875%, 795 FICO, Primary Purchase, $120,000, SFR, 97% LTV, 30 day lock, points 1 & 1.500. 102.500 Rate Guide Price +1.500 Discount Collected -3.250 HomePath Adjuster -.500 High LTV -.250 FICO 100.000 Final Price No Pricing Adjustment Cap with HomePath Programs

  9. Page 5 contains the Open Access program and adjusters. There cannot be a shortage with this product. Pricing Example: 30YR, 4.500%, 787 FICO, Primary Refinance, $260,000, SFR, 100/105, 30 day lock, points .750 & 0. 101.375 Rate Guide Price -.250 .750 Origination -1.500 CLTV -1.000 High LTV -.250 FICO +1.625 Pricing Adjustment Cap 100.000 Final Price

  10. Page 6 contains the DU Refi Plus Fixed programs (<105% LTV & 105.01-125 LTV) and pricing adjusters. There cannot be a shortage with these programs. Pricing Example: 20 YR, 4.125%, FICO 745, Primary Refinance, $150,000, condo, 106 LTV, 45 day lock, points 1 & .250. 101.500 Rate Guide Price -.750 Condo -1.000 High LTV +.250 Discount Collected 100.000 Final Price Pricing Example # 2: 30 YR, 4.500%, FICO 708, Primary Refinance, $223,000, SFR, 100 LTV, 30 day lock, points .875 & 0. 101.625 Rate Guide Price (<105% LTV) -.125 .875 Origination Collected -1.000 High LTV -.500 FICO 100.000 Final Price

  11. Rate Lock Email: ratelock@movementmortgage.com Phone: (757)227-3385 ext. 3658

More Related