Finmo helps you capture comprehensive loan details and makes completing your borrowers’ loan information faster and more accurate with auto calculations.
Calculating the base loan amount
1. Click into the “Loan information” section of the application.
2. Click “Calculate” to automatically calculate the base loan amount using this formula:
Base Loan Amount = Purchase Price - Down Payment + Cost of Improvements
Selecting the mortgage type
You can select the mortgage type from the options below:
Conventional: Loan type not backed by government agency programs like VA or FHA.
FHA: Loan type backed by the Federal Housing Administration (FHA), offering low down payment loans and flexible credit requirements. Typically for first-time or lower-income buyers.
VA: Loan type backed by the U.S. Department of Veterans Affairs (VA), available to eligible veterans and active service members, often with no down payment required.
Points % and Lender credit/discount fields
Points %: Enter percentage as positive (discount points) or negative (lender credit). Example: -1% for a lender credit or +1% for discount points.
Lender credit or discount: Lender credit or discount is auto-calculated based on the points % entered.
Example: $300,000 base loan × -1.00% = $3,000 lender credit
$300,000 base loan × +1.00% = $3,000 discount
Structuring ARM Loans
Adjustable Rate Mortgage (ARM) loans require specific information like margins and rate caps for qualifying rate calculations and AUS submissions. Finmo makes it easy to fill out this information by providing common product templates and calculation tools to streamline this process.
Under the “Loan product terms and fees” section:
Select a mortgage type (Conventional, FHA or VA)
Select “Adjustable” for amortization type
Choose an ARM product template
Click “Calculate” under “Index rate” to autocalculate based on today’s SOFR rate.
Click “Calculate” under “Qualifying rate” to autocalculate based on the qualifying rate rules for each mortgage type. This is factored into the subject property principal and interest amount for DTI calculations.
Should you have any questions please click on the chat button or email supportus@lendesk.com