What is Best and Worst Case Amortization?

Best Case Amortization. The best case amortization shows what the payment amortization would be as the rate moves from the initial rate to the floor as fast as possible based on variable rate caps. This amortization schedule provides a visual of the values that should print to the Projected Payments Table on the Loan Estimate and Closing Disclosure.

For ComplianceOne Adjustable Rate Mortgage (ARM) loans, the Projected Payments table uses the current payment as the MIN payment value versus the currently schedule payment amount because the Best Case payment could be better than the current payment.

Worst Case Amortization. The worst case scenario shows what the payment amortization would be as the rate moves from the initial rate to the ceiling as fast as possible based on variable rate caps. This amortization schedule provides a visual of the values that should print to the Projected Payments Table on the Loan Estimate and Closing Disclosure.

The Max payment is reflecting Worst Case Amortization payments.