Points Analysis
Objective
This SOP outlines the steps to utilize the Points Analysis feature in Deal Details for evaluating different rate and point options effectively.
Key Steps
1. Accessing Points Analysis 0:00
Open the Deal Details application.
Navigate to the scenarios section of your deal.
Locate the Points Analysis feature in the control panel.
2. Confirming Key Metrics 0:43
Click on 'Edit Key Metrics'.
Verify the current rate, points, and lender credit settings.
3. Initiating Points Analysis 1:03
Click on the 'Points Analysis' button.
Review the current scenario details displayed.
4. Adding Rate Options 1:12
Input different rate options:
Example: Change rate to 6.25% with 2 points.
Add another option: 6% with 2.45 points.
Ensure no lender credit is applied.
5. Analyzing Options 1:35
Click 'Analyze Options' to view the results.
Review the monthly payment, principal, interest, and total points for each option.
6. Comparing Options 2:13
Note the payment changes and amortization gains for each option.
Calculate the total monthly change and breakeven points for each option.
7. Previewing Results 3:54
Use the option to preview the analysis as a PDF.
Prepare to send this PDF to clients.
8. Applying an Option 4:32
Discuss options with the client.
If an option is chosen, click 'Apply Option' to update the scenario.
Decide whether to update the existing scenario or save it as a new one.
9. Conducting Further Analysis 5:07
If needed, start a new points analysis for different rate scenarios.
10. Presenting to Clients 6:12
Clearly explain the benefits and drawbacks of each option to the client.
Highlight the breakeven points and potential future costs.
Cautionary Notes
Ensure all data entered is accurate to avoid misleading results.
Double-check the calculations for payment changes and amortization gains before presenting to clients.
Tips for Efficiency
Familiarize yourself with the Points Analysis feature to speed up the process.
Use templates for common scenarios to save time on data entry.
Regularly review feedback on the analysis process to improve efficiency.