The Secrets of Mortgage Pricing
For many originators today, mortgage pricing has always been
automated and presented to them by their company’s pricing
engine. Older originators may remember the days when lines
of fax machines pumped out rate sheets all day, and they had
to figure out pricing for themselves. Whichever world you come
from, understanding how residential mortgage pricing gets
created is an important skill to learn.
Price
Raw price
Par pricing
Basis points
Below par pricing
Above par pricing