Terms Screen

Terms

Rate Type

Utilize this field to indicate whether the interest rate will adjust or remain constant during the life of the loan. Select 'F' for fixed rate, 'ARM' for an adjustable rate, GPARM for GPM/Adjustable or just press [Enter] to accept the DocMagic plan-specific rate type default. Required: Yes; Default: Plan

GPM Type

If your loan requires a graduated payment schedule, select the appropriate GPM code from the option list. The proper code choice is mandatory for the calculation of the graduated payment schedule and the computation of the initial P & I payment. Required: No; Default: No

Buydown Type

If your loan requires a buydown payment schedule, select the appropriate buydown code from the option list. Selection of the proper buydown code triggers the calculation of the buydown payment schedule. Note: A buydown which is paid by a seller or other third party will not result in a buydown payment schedule for purposes of the Truth-in-Lending disclosure. The only time the payment schedule will reflect a buydown is when the borrower pays the buydown fee. If a buydown type is indicated in this field, the buydown charge amount will be automatically calculated and defaulted in the Charge Amount field. Required: No; Default: No

Appraised Value

Type the appraised value of the property in this field. DocMagic will automatically insert '$', ',' and '.' signs in all numeric fields for you. All you need to do is enter the actual number. Example: If you enter 125000, the resulting entry will be $125,000.00 Required: No; Default: No

Approved JR Lien

Type the total amount of subordinate financing in this field. If there is more than one lien, enter the total outstanding amount of all other liens. DocMagic will automatically insert '$', ',' and '.' signs in all numeric fields for you. Example: If you enter 125000, the resulting entry will be $125,000.00. Required: No; Default: No

Sales Price

If this loan is for the purchase of property, type the sales price in this field. DocMagic will automatically insert '$', ',' and '.' signs in all numeric fields for you. All you need to enter is the actual number. Example: If you enter 125000, the resulting entry will be $125,000.00. Required: No; Default: No

Loan Amount

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Initial Interest Rate

Type the initial interest rate or note rate in this field. Required: Yes; Default: No

DocMagic Compliance Articles:

Maximum Interest Rate Matrix

Term/Amortization

Enter the length of this loan (in MONTHS) in this field. Example: a 30-year amortized loan due in 5 years would have a term of 60 months. Your entry would be '60'. For bi-weekly loans, '999' will default in the term field. The actual term will be calculated automatically when the worksheet is processed. Required: Yes; Default: Plan

Monthly Payment

How many months should be utilized for computing the monthly P & I payment and resulting payback stream? Example: a 30-year amortized loan due in 5 years would have an amortization period equal to 30 years or 360 months. Your entry would be '360'. For bi-weekly loans, enter the original amortization period. For example, for a 30 year bi-weekly loan, your entry would be '360'. Required: Yes; Default: Plan

First Payment Date

Enter the date that the first payment will be due. This is generally the first day of the month and should always be after the document and disbursement dates. This date has an effect on the impound account analysis as the forecast is based on a twelve month estimate from this date. Note: Entry of "+ # days" or "- # days" will result in an automatic date computation. For example: "+5" would add 5 days to today's date while "-30" would subtract 30 days from today's date. DocMagic will add "/" for you. An example entry for June 30, 1998 would be "063098". Required: Yes; Default: Last 1st Pay Date

Days Prepaid Interest

Enter the number of days of prepaid interest to be collected at closing and included as part of the prepaid finance charge. The default for this field is the difference between the disbursement date and the date one month prior to the first payment date (per diem interest date.) Required: Yes; Default: Plan/WS

DocMagic Compliance Articles:

Negative Prepaid Interest

Paid By

Interest is paid by the Broker, Borrower, Seller, etc.

HELOC

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Initial Advance

Enter the amount of the initial advance that the borrower will receive at closing. All you need to enter is the actual number. Example: If you enter 125000, the resulting entry will be $125,000.00. Required: No; Default: No

Draw / Repay Period

Enter the number of months for the draw and repay periods.

Annual Fee

If the loan program has an annual fee, please select the "Yes" option. Required: Yes; Default: No

ARM

Interest Change Date

Enter the date of the first interest rate change, utilize the plan-generated default date. The audit system will detect any change date entry that does not match the plan-generated default date and warn you of the discrepancy. Normally, the first interest rate change date will be one month prior to the first payment change date. All date fields insert the '/' symbols automatically. Simply type in any date as one 6-digit number. In addition, entering "+30" or "-30" will result in the automatic date computation based on the addition/subtraction of days indicated. Example: August 21, 2009 would be entered as '082194'. If today's date was October 15, 2009 and "-15" was entered, October 1, 2009 would be the resulting date entered. Required: No; Default: Plan

Payment Change Date

Enter the date of the first scheduled payment change in this field or utilize the plan-generated payment change default date. The audit system will detect any change date entry that does not match the plan-generated default date and warn you of the discrepancy. Normally, the first payment change date is one month after the first interest change date (assuming non-negative amortization). Example: On a 6-month ARM, if the first payment date is 11/1/2009, add 6 months for the first payment change (5/1/2009) and subtract one month for the date of the first interest change (4/1/2009). All date fields insert the '/' symbols automatically. Simply type in any date as one 6-digit number. In addition, entry of "+ # days" will result in the automatic computation of the date reflecting the addition/subtraction of days indicated. Example: August 21, 2009 would be keyed as '082109'. Required: No; Default: Plan

Margin

Type the margin (spread/differential) in this field. Example: '2.500' For disclosure purposes... adding the margin to the index rate and rounding, will result in the Target Rate. The initial rate will be adjusted (subject to adjustment caps/parameters) to the target rate. Required: Yes (ARM); Default: No

Current Index

Enter the current ARM index value for the specific index being utilized as of the date of interest rate-lock. Required: Yes (ARM); Default: Last Value

Ceiling (Max) Rate

In this field... enter the highest possible interest rate that can be reached over the life of the loan or utilize the plan-generated default ceiling rate. This rate can be calculated by adding the initial interest rate to the lifetime rate cap. Example: Start Rate: 4.5%, Lifetime Rate Cap: 6.0%, then Ceiling Rate: 10.5%. Or review our state-specific maximum interest rate matrix (see link below). Required: No; Default: Plan

DocMagic Compliance Article:

Maximum Interest Rate Matrix

Floor (Min) Rate

Enter the lowest possible interest rate that can be reached over the life of the loan. This can normally be computed by subtracting the lifetime rate cap from the initial rate. If this is not the case, it is important that you make the correct determination. Note: Entering the start rate in this field will disable downward adjustments in subsequent adjustment periods. Required: No; Default: No

First Interest Cap

Enter the maximum percentage point movement in the interest rate that can occur at the time of the first rate adjustment. Example: A Libor 228 program will generally have a 1st adjustment rate cap ranging from 1.000% to 3.000%. Required: No; Default: No

Subsequent rate Cap

Enter the maximum percentage point movement in the interest rate than can occur in any single interest rate adjustment period. Example: A six-month cost of funds ARM program would generally have an individual adjustment cap of 1.000% in any 6-month period. Required: No; Default: Plan

Life-of-loan Cap

Enter the maximum percentage point movement in the interest rate that can occur over the life of the loan. A default figure will be computed by subtracting the interest rate entry from the ceiling rate entry. All figures are cross-checked to assure accuracy. Example: A typical one-year treasury ARM program might have a life cap of 5.000%. Required: No; Default: Plan

Miscellaneous

Assumable

If this loan is assumable (subject to conditions) click 'Y' in this field. If this loan is not assumable, click 'N', or, if you are unsure, simply press [Enter] to accept the plan-specific default entry. Required: No; Default: Plan

Prepayment Penalty

Does this loan have a prepayment penalty? If so, click 'Y'. If not, click 'N'. If you are unsure, simply accept the plan-specific default entry. IMPORTANT: This field should coincide with the note/rider being utilized. Most conventional documentation does not contain verbiage allowing for a prepayment penalty. If you are unsure of this information, or require the use of a custom prepayment rider, consult DSI. Required: No; Default: Plan

DocMagic Compliance Articles:

Prepayment

If there is a prepayment penalty, what is the period of time, IN MONTHS, during which it is applicable? Required: No; Default: Plan

Soft Prepayment

Enter the Soft Prepayment period that will apply. Required: No; Default: No

DocMagic Compliance Article:

At Your Service: When a Prepay Penalty Includes a Soft Prepay Provision

Prior Prepay Amount

Enter the prepayment fee charged on the loan being refinanced if made/held/serviced by creditor or affiliate.

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Prepay Penalty Options

[Blank]

APR/Payment Schedule

Select this option to view the APR and Payment Schedule.