Thread Options
#1397859 - 05/28/10 07:18 PM rate used in underwriting variable rate loans
Soccer Offline
Platinum Poster
Joined: Jan 2010
Posts: 995
Utopia
When underwriting a variable rate loan, is there guidance to determine which loan rate should be used in the underwriting process? For example if our current rate is 3.25 and our ceiling is 15.9, how do we determine what rate we use for underwriting?
_________________________
Everything happens for a reason

Return to Top
Lending Compliance
#1397906 - 05/28/10 08:11 PM Re: rate used in underwriting variable rate loans Soccer
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,231
Bloomington, IN
You use the fully indexed rate (index plus margin) at the time of consummation.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

Return to Top

Moderator:  Andy_Z