How to Price a Loan
Mar 31, 2015
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.
• 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
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)
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.
Rate Extension Policy
First Extension will be 0.02 per day. Second Extension will be 0.03 per day.You must extend to a normal business day, these cannot expire on a weekend or holiday
Maximum number of extensions is limited to 2Maximum number of days for combined extensions is 30 days
No Extensions permitted for Non-Conforming ProgramsAll Lock Extension Requests should be sent to [email protected] from PCL
3rd Extension Requests or requests exceeding 30 days must have a firm close date in place first
Page 2 of the rate guide has Conforming
Fixed products (<=$417,000)
Extended Lock Option
Page 3 contains High Balance and Non-Conforming Fixed and ARM
products
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)
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 FICO100.000 Final Price
No Pricing Adjustment Cap with HomePath
Programs
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 Cap100.000 Final Price
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 Collected100.000 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