Purpose Calculator Locations Transferred Data Defaults & Assumptions     ARM Loans     Second Mortgage

Interest Rate Projection Details     First Mortgages     Second Mortgages Reports Trio Users

Purpose

The purpose of the Mortgage Comparison Calculator is to allow you to compare up to three mortgage scenarios, including borrower qualification ratios.

Calculator Locations

The Mortgage Comparison Calculator can be reached from eMagic’s Loan Folder, Loan App and Edit Lead pages:

Loan Folder:


Loan App:


Edit Lead:

What Data is Transferred Between a Lead and a Loan File and the Calculator?

These saved data fields will populate the calculator:

Property Value Purchase Price Occupancy Property Taxes Homeowner’s Insurance HOA Dues Other Expense Total Income Current Monthly Housing Expense

Total Monthly Non-Housing Debt Product Loan Amount Down Payment ($) Rate Interest Only # Mos Qualifying Rate Life Cap Subordinate Financing

These saved data fields from the calculator can populate the loan and lead file:

Product Occupancy Subordinate Financing Loan Amount Down Payment ($) Rate

Interest Only # Mos Qualifying Rate Life Cap Real Estate Taxes Closing Costs

Under the calculator’s “Comparison Results,” select the radio button for the scenario you want to populate the lead or loan file. Save a scenario to populate your lead or loan.

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Defaults & Assumptions

The value entered in the Rate field is used to calculate the initial principal and interest payment.

If the loan has an interest only period, a fully-amortized P&I payment that is based upon the selected Product’s amortization term, is used in the qualifying ratios.

MGIC MI guidelines are incorporated in the calculator. When a loan scenario does not comply with an MGIC guideline, a Microsoft Internet Explorer Alert ‘!’ message will appear only once. You can close the alert message and continue using the calculator. Thereafter, loan scenarios which fall outside MGIC guidelines will contain an MI value of “Unavailable,” and the calculator will display the message, “One or more scenarios cannot be calculated.”

The MI calculations in this calculator are not to be relied on for qualifying a borrower for MI or as a final MI quote.

See MGIC’s Rate Finder calculator for MI quotes.

1. ARM Loans
   
   

   Qualifying ratios are calculated using a P&I payment based upon the rate entered in the Qualifying Rate field, if any.
   
   All loans have an amortization term of 360 months.
   
   All adjustments are made to the rate.

2. Second Mortgage
   
   

   Total Interest Paid and Total Amount paid will include the second mortgage only if Calculate Monthly Payment is selected in the Subordinate Financing form.
   
   Amortization schedules for second mortgages can be displayed only if you select Calculate Monthly Payment in the Subordinate Financing form.
   
   A HELOC is assumed to have interest only payments throughout the term of the loan.
   
   Fixed-rate second loans are fully amortized (no balloon loans).
   

3. Interest Rate Projection Details
   
   

   Interest rate projections apply to ARM loans. Use different interest rate projections to provide different amortization scenarios for different rate increases. For example, create a best-case (Remain flat), mid-case (Rise gradually) and worst-case (Rise sharply) scenario.
   
   

   1. First Mortgages
      
      

      Remain Flat: The start rate (interest rate) will remain flat the same throughout the life of the loan.
      
      Rise gradually: The start rate (interest rate) will increase by 1% in the month after the initial adjustment period ends. Thereafter, it will increase by 0.75% per subsequent adjustment period until the maximum rate is reached.
      
      Rise sharply: The start rate (interest rate) will increase by 2% in the month after the initial adjustment period ends. Thereafter, it will increase by 2% per subsequent adjustment period until the maximum rate is reached.

   2. 2nd Mortgages
      
      

      Remain flat:  The start rate (interest rate) will remain the same throughout the life of the loan.
      
      Rise gradually:  The rate during the first year after the end of the fixed period will be equal to the start rate plus a 0.5% per year increase for every year since loan start. The rate will increase by 0.5% after the next 12 months and increase again by 0.5% in another 12 months. The rate will then maintain this level for the remaining loan term.
      
      Rise sharply:  The rate during the first year after the end of the fixed period will be equal to the start rate plus a 1% per year increase for every year since loan start. The rate will increase by 1% after the next 12 months and increase again by 1% in another 12 months. The rate will then maintain this level for the remaining loan term.

Reports

Up to eight lines of text can be displayed in the calculator’s Notes field. These notes appear in the PDF report and can be used to share important information about the calculator results.

When an amortization schedule is produced by the calculator, it will appear in the saved PDF report.

Reports are in PDF format. Use the icons on the PDF tool bar to save, print or email the report.

Trio Users

The PDF report can be saved to your PC and then uploaded to your Trio folder.

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