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The BIC uses the member's input of a local fixed interest rate and expected Mortgage Broker (MB) profits.

Mortgage Broker profits include origination fees, other fees and COMPENSATION TO BROKER Not Paid Out Of Loan Proceeds.

COMPENSATION TO BROKER is also referred to as Rebates.

This calculator assumes each 1/8th of a percent (0.125%) equals one half of a one percent (0.500%) of any mortgage loan amount. Interest rate gouging occurs when the rate charged exceeds a benchmark rate. The RELDT® BIC estimates an interest rate that will not provide the Mortgage Broker with any profits. It assumes that a funding lender would offer that rate at a cost to the borrower i.e. 6.00% at 1 point + $795.

The BIC input requires the member to contact local MBs in an attempt to identify all expected profits.

The key questions are:

1. What are your "X" (30,20,15, etc.) fixed interest rates?
2. What are your origination fees?
3. What are your discount points?
4. What are your other fees (processing, etc.)?
5. What rebates will you receive from the lender?

The answer to these questions gives the member an idea of the total compensation expected by the MB.

Create competition for your mortgage business by controlling lender selection. Lender's have the money, but the mortgage borrower controls the profits.

You need to be a RELDT® member to use the Benchmark Interest Calculator.