How To
      Back to home
      1. KNOWLEDGE BASE
      2. FAQ's
      3. How To

      HELOC Qualifying Rate Entry

      To configure HELOC to have a fixed rate interest-only payment

      Follow these steps to configure a HELOC product with IO payment, however with 1% as a monthly qualifying payment.

      Step 1.  Go to Settings/Programs to create a HELOC product.  Be sure to select "HELOC" under "Loan Type" and "Rate Type" to select "Adjustable Rate". 

      Step 2.  Enter "Interest Only Term".

      Step 3.  Enter HELOC details on the right side of the panel.

      Setp 4.  Under the Adjustable Rate area,  if the "Qualifying Rate Factor" is blank, the qualifying PI will be calculated by the Note rate entered.  If users enter 12% as the "Qualifying Rate", then the qualifying monthly PI will be 1% of the line amount in the monthly DTI calculation. 

      Step 5.  Use a loan to verify.  See Summary section.  Sample shown below.