Explore rates logic
Mortgage loans are organized into categories, or loan types based on the size of the loan and whether they are part of a government program. (For more info: https://www.consumerfinance.gov/owning-a-home/loan-options/#loan-programs-expand-header). Loan amount thresholds for each loan type (Conventional, FHA, VA) are set each year by the FHA and the FHFA. The Explore Rates tool guides the user into choosing an appropriate loan type based on their geographic location and loan amount. It uses the cfpb/jumbo-mortgage module to check the loan amount from the tool's input panel against the loan limits for the desired loan type and geography. If the desired loan type is not available at the desired loan amount in the desired geography, the tool automatically chooses an available loan type and displays an alert.
Interest rates come in two basic types: fixed and adjustable. (For more info:https://www.consumerfinance.gov/owning-a-home/loan-options/#interest-rate-expand-header). The Explore Rates input panel defaults to fixed rate. When a user changes the interest rate type to adjustable, this code module displays an additional input dropdown to select the type of ARM (10/1, 7/1, 5/1, 3/1). Because our database does not have data for 15-year ARM loans, additional logic limits the user to only 30-year ARMs.