702.07

Fixed Rate Debt Service Payments

Operating Procedures

To calculate the fixed rate monthly P&IP&IPrincipal and interest payments, you must:

  1. Determine the amount required to repay the Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. UPBUPBUnpaid Principal Balance .
  2. Divide the amount into equal monthly installments.
  3. Include interest accrued at the fixed rate over the amortization term perPart IV, Chapter 7: Variable Rate Conversions and Renewals, Section 702.06: Fixed Rate Amortization.
  4. Use a 30/360 interest accrual method, regardless of whether the Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. uses a 30/360 or an actual/360 interest accrual method.