This is an example of how loan pricing (locks) work.
Rates on this page are not updated daily.
As the loan lock for a particular interest rate increase in days, the more points the
lender charges. Conversely, the higher the interest rate you pay, the more the lender
will give back in rebates. Most loan brokers charge the borrowers the cost, but pocket the
rebates for themselves. (See example below)
This is
an example of how loan pricing (locks) work.
|
Interest Rate
|
12 Day Pricing
|
21 Day Pricing
|
30 Day Pricing
|
45 Day Pricing
|
60 Day Pricing
|
30 Year Fixed
|
7.375% |
2.000 |
2.375 |
2.625 |
3.250 |
3.375 |
| 7.500% |
1.375 |
1.750 |
2.000 |
2.625 |
2.750 |
| 7.625% |
0.875 |
1.250 |
1.500 |
2.125 |
2.250 |
| 7.750% |
0.250 |
0.625 |
0.875 |
1.500 |
1.625 |
| 7.875% |
-0.250 |
0.125 |
0.375 |
1.000 |
1.125 |
| 8.000% |
-0.875 |
-0.500 |
-0.250 |
0.375 |
0.500 |
| 8.125% |
-1.250 |
-0.875 |
-0.625 |
0.000 |
0.125 |
| 8.250% |
-1.750 |
-1.375 |
-1.125 |
-0.500 |
-0.375 |
| 8.375% |
-2.250 |
-1.875 |
-1.625 |
-1.000 |
-0.875 |
| 8.500% |
-2.750 |
-2.375 |
-2.125 |
-1.500 |
-1.375 |
| 8.625% |
-3.125 |
-2.750 |
-2.500 |
-1.875 |
-1.750 |
Using a $100,000 loan amount with 30 day pricing and an
interest rate of 7.625%, the cost would be $1,500.00 (100,000
x .01500)
Using a $100,000 loan amount with 30 day pricing and an interest
rate of 8.375%, the rebate would be $1,625.00 (100,000 x .01625)
|
