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BankersOnline.com Forums Banker Forums Newbie Nook Rate Spread Help
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#890303 - 01/18/08 06:41 PM Rate Spread Help
donna.raisor Offline
Platinum Poster
Joined: Sep 2004
Posts: 554
I am reading the Guide to Getting it Right and I am confused
Can someone provide an example in simple terms on how to calculate the rate spread.

Am I suppose to use the APR on the loan or treausry yield rate to calculate? I am so confused.

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#890329 - 01/18/08 07:02 PM Re: Rate Spread Help donna.raisor
hmdagal Offline
Power Poster
hmdagal
Joined: Dec 2002
Posts: 3,841
You need to compare the two. The FFIEC has a nice calculator that will do this for you if you enter the following information:

rate lock date, APR, loan term (in years) and lien status.

Here's the link: http://www.ffiec.gov/ratespread/default.aspx
Last edited by hmdagal; 01/18/08 07:03 PM.
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#890379 - 01/18/08 07:40 PM Re: Rate Spread Help hmdagal
donna.raisor Offline
Platinum Poster
Joined: Sep 2004
Posts: 554
hmdagal in the APR field do I use the APR on the loan or the rate from the Treasury Securities table, this is where I am getting confused?

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#890384 - 01/18/08 07:42 PM Re: Rate Spread Help donna.raisor
hmdagal Offline
Power Poster
hmdagal
Joined: Dec 2002
Posts: 3,841
That's the APR for the loan. The calculator has the Treasury Rates built into it.

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