| Interest Rate |
The reported interest rate on fixed-rate mortgage loans; analyzed as an average. |
Reflects the base cost of borrowing and the pricing strategy. |
HMDA/LAR |
Influenced by lender credits, discount points, and borrower risk. Use with the rate spread for assessing high-cost loans and competitive pricing. |
| Discount Points |
Borrower-paid points expressed in dollars and/or as a percent of the loan amount. |
Indicates borrower trade-off between upfront costs and monthly payments. |
HMDA/LAR (Closing Disclosure - Box A) |
Higher points may signal rate buydowns. Should be evaluated alongside interest rate and lender credits. |
| Lender Credits |
Credits paid by the lender to offset borrower closing costs; reported in dollars and/or percent of loan amount. |
Used to attract rate-sensitive borrowers or offset third-party fees. |
HMDA/LAR |
Typically associated with higher interest rates. Helps decode 'zero cost' or lender-paid closing offers. |
| Pull-through Rate |
Share of applications that result in originations. |
Measures pipeline efficiency and borrower/lender commitment. |
Engineered by Polygon Research |
High pull-through rates may reflect stronger borrower profiles or effective pre-qualification and processing. |
| Rate Spread |
Difference between the loan's APR and the APOR (Average Prime Offer Rate) at time of lock. |
Central indicator for high-cost loans under regulatory rules. |
HMDA/LAR |
A threshold-based metric used to determine Higher-Priced Mortgage Loans (HPMLs). Sensitive to pricing add-ons and borrower risk adjustments. |
| Net Charges and Credits |
Origination charges minus lender credits plus any non-borrower-paid discount points. |
Captures the true net cost of the loan to the borrower. |
Derived from HMDA/LAR data |
Offers a fuller picture than either origination charges or credits alone. Supports cost comparisons across lenders and channels. |
| DTI (Debt-to-Income) |
Ratio of borrower monthly debt payments to income. |
Reflects borrower capacity to repay. A key risk-based pricing input. |
HMDA/LAR |
Higher DTI often corresponds with pricing adjustments and overlays. May be capped or excluded in certain loan programs. |
| CLTV (Combined Loan-to-Value) |
Ratio of total secured debt on the property to its appraised value. |
Measures borrower equity and default risk. Influences eligibility and pricing. |
HMDA/LAR or engineered if not reported directly |
CLTV above 80% usually triggers MI (Mortgage Insurance) or LLPAs. Used in the LLPA matrix created by PolyGen. |
| Loan Amount (Average) |
Average loan amount among originated loans. |
Indicates market segment (e.g., conforming vs. jumbo) and cost structure. |
HMDA/LAR |
Often used to normalize borrower-paid costs (e.g., points, fees) as percent of loan. Affects qualification and investor appetite. |
| Estimated Credit Score |
Approximate borrower credit tier derived using pricing behavior and available disclosures. |
Fills the gap where credit score is not disclosed in HMDA. |
Engineered by Polygon Research |
Enables LLPA-style pricing analysis and segmentation when official credit scores are missing. Validated using agency disclosures and market patterns. |
| Services (Shopped/Not) |
Closing costs related to third-party services that were or were not shopped for by the borrower. |
Highlights consumer choice and lender steering behavior. |
HMDA/LAR |
Helps evaluate lender transparency, borrower engagement, and the role of broker vs. retail channels. |
| TIP (Total Interest Percentage) |
Total interest over the life of the loan as a percent of the loan amount; used for fixed-rate loans only. |
Offers long-term cost perspective on loan pricing. |
HMDA/LAR |
TIP captures the cumulative impact of interest payments. High TIP can flag costly loans even with modest upfront fees or monthly payments. |
