Pricing Calculator

What the pricer shows you

The displayed price already carries a markup applied by the pricing engine. Conventional is marked up 3, government is marked up 4. That is why switching the loan type moves every figure by a full point even though nothing else changed.

The math

• YSP = price + markup - 100
• Gross margin = YSP + points - credit
• Concession = 100 - (price + points - credit)
• Final lock price = price displayed + concession

Gross margin is what the loan pays. The concession is what secondary has to add to bring the borrower side back to 100. The two always reconcile: gross equals the markup less the concession. If they ever disagree, an input is wrong.

The final lock price is what the confirmation comes back at. It works out to 100 less any discount points, plus any lender credit, so on a loan with neither it locks at par.

Worked example, conventional

Price 98.000, borrower pays 1 point.

• YSP = 98 + 3 - 100 = 1.000
• Gross margin = 1 + 1 = 2.000
• Concession = 100 - (98 + 1) = 1.000
• Final lock price = 98 + 1 = 99.000

Worked example, government

Price 99.000, 1 point lender credit.

• YSP = 99 + 4 - 100 = 3.000
• Gross margin = 3 - 1 = 2.000
• Concession = 100 - (99 - 1) = 2.000
• Final lock price = 99 + 2 = 101.000

Percent or dollars

One point is one percent of the loan amount. Points and credit each take either side, and typing in one fills the other. Whichever side you typed last is the one held as entered.

Why a field turns red

Change the loan amount or the loan type after points or credit are already entered and those fields are outlined and flagged. A dollar figure no longer matches the percentage it came from, and a change of loan type means a different price sheet, so both are worth re-checking before you quote. Everything keeps calculating. Correct either side, or click the flag to dismiss it.

Reset

Clears every field, the loan type and any flags, back to a blank sheet.