how to price a loan. useful pricing information rate guide pricing assumes 1.000 origination is...

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 ratelock@movementmortgage.com 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

Rate Lock

Email: ratelock@movementmortgage.comPhone: (757)227-3385 ext. 3658