The Mortgage Details module is designed to estimate the outstanding balance of your client’s current mortgage, updating it regularly as mortgage payments are made. This enables Ownwell to:
Estimate home equity.
Identify opportunities to:
Save interest over the remaining term of the mortgage.
Purchase a new home using proceeds from selling the current home.
Access equity through refinancing.
The module also automatically updates variable rates and payments for variable and adjustable-rate mortgages whenever the prime rate fluctuates.
Disclaimer: Focus on Engagement, Not Perfection
Ownwell’s primary goal is to generate directionally accurate opportunities for your clients with minimal effort on your part. It's designed to create valuable conversations that allow you to build trust, demonstrate value, and stay top of mind throughout your client's homeownership journey. It’s not necessary to match the Mortgage Details exactly to the client’s mortgage statement. Here’s why:
Lender nuances: Different lenders use unique calculations that Ownwell may not account for in detail.
Small differences are negligible: A minor discrepancy (e.g., 10 basis points) typically won’t materially impact the insights for most homeowners.
The homeowner's report includes multiple disclaimers saying that the figures in the report are estimates and that they can notify you if there are any major differences, which you can then update in Ownwell.
The homeowner's report includes disclaimers clarifying that the figures are estimates. Clients can notify you of significant discrepancies, which you can easily update in Ownwell if needed. What matters most is providing actionable insights that answer your client’s key questions:
How can they save thousands of dollars in interest?
Can they trade up to their forever home?
Can they access equity to fund investments?
In other words, don’t let perfection get in the way of delivering valuable insights and engaging your clients. Aim for accuracy that’s “good enough” to spark meaningful conversations and drive client decisions.
How it Works
Ownwell uses key details from the original mortgage application - including mortgage amount, purchase price/property value, net rate, rate type, amortization, term length, and payment frequency - to generate an amortization table that estimates the current outstanding balance.
Handling Variable Rates
Ownwell calculates the discount or premium on variable and adjustable-rate mortgages by tracking historical prime rates and estimating the prime rate at the time of acceptance. Since we don’t have access to the acceptance date, we use the mortgage’s closing date to estimate the prime rate at the time of acceptance. This method is accurate in most cases but may result in minor discrepancies during periods of rapid rate changes (e.g., the past six months or throughout 2022).
If you notice discrepancies, you can correct them by updating the prime rate (instructions provided below).
Editing the Prime Rate
If the estimated original prime rate is incorrect, you can change it in the Original Mortgage tab. Any updates made in the Original Mortgage tab will automatically carry over to the current state of the mortgage.
Handling Variable or Adjustable-Rate Clients Who Lock In a Fixed Rate
If a client with a variable or adjustable-rate mortgage locks into a fixed rate, you’ll need to update the Net Rate field in the Current Mortgage tab.
Currently, this field is not editable. To make this change, please contact our support team, and we'll assist you. We’re also working on a self-serve option to handle this scenario, which will be available soon.
Accounting for Posted Rates
For lenders that use posted rates, such as TD or Scotiabank, Ownwell estimates the posted rate and associated discount based on the closing date. These figures are important for estimating bank IRD (Interest Rate Differential) penalties.
Editing the Posted Rate
If the estimated posted rate is incorrect, you can change it in the Original Mortgage tab. It’s crucial to make this adjustment in the Original Mortgage tab rather than the Current Mortgage tab because it is tied to the mortgage’s original state. Any updates made in the Original Mortgage tab will automatically carry over to the current state of the mortgage.
Accounting for Alt/B Clients
Ownwell determines whether or not the client's current lender is “Alt/B” based on the name shown in the Current Mortgage section of the Client Details page. If we identify the lender as Alt/B, Ownwell only considers Alt/B lenders for Interest Savings, Purchasing Power, and Access Equity estimates. This helps ensure we use rates that reflect what the client could potentially qualify for.
If the client's current lender is a Bank, Monoline, or Credit Union, Ownwell does not limit which lenders it considers - so Ownwell generates estimates based on the best rates from all lender types.
You can check the lender type just below the lender name in the Current and Original mortgage tabs.
A Note on Mortgage Application Data
We recognize that the details in the mortgage application may not always match the final mortgage commitment. However, in most cases, the information will be close enough to provide accurate estimates (see above disclaimer - Focus on Engagement, Not Perfection). If greater precision is required, you can update most of the mortgage details using data from a commitment letter or client feedback later.
This process ensures Ownwell remains a powerful tool for generating actionable insights while giving you flexibility to refine the data when needed.
Editing Mortgage Details in Ownwell
To edit mortgage details, navigate to the Client Details tab, then choose either the "Original" or "Current" mortgage tab and click Edit.
Understanding the Difference Between "Original" and "Current" Mortgage Tabs
Original Mortgage Tab: This reflects the mortgage details as they were at the time of the mortgage application, such as the initial loan amount, rate, lender, and property value.
Current Mortgage Tab: This represents the mortgage's current state, calculated by projecting information from the original mortgage to the present day.
Why are these tabs separate?
Clients may have made changes since the mortgage was approved, such as prepayments or rate adjustments, that don't alter the original mortgage terms. For example, you might update the outstanding balance in the Current tab while keeping the original mortgage details intact.
When to Edit Each Tab
Original Mortgage Details: Edit these details when you need to update information from the start of the mortgage, such as:
Final interest rate
Lender details
Original property value
Changes to the Original tab will cascade into the Current tab, updating the mortgage's projected state accordingly.
Current Mortgage Details: Use this tab to reflect updates to the mortgage's current state. For example:
Correct an outstanding balance after a prepayment.
Update the mortgage type or rate when a client locks in a fixed rate after exceeding their trigger rate on a variable mortgage.
Important Notes:
Rate Calculations: Posted and prime rates are estimated based on the closing date.
Double-Check Mortgage Types: Many adjustable-rate mortgages (ARMs) are submitted as variable-rate mortgages (VRMs) by mistake. Ensure the correct type is selected, as it significantly affects calculations for outstanding balance and home equity.
Trigger Rates for VRMs:
For VRMs, Ownwell estimates the trigger rate. If exceeded, the system assumes negative amortization unless updated otherwise.
If the client has exceeded their trigger rate, confirm with them whether they:
Locked in a fixed rate.
Adjusted payments or made other changes.
Ask for a recent mortgage statement to verify and update their Current mortgage details. You can see who has exceeded their trigger rate by clicking the "Trigger rate" shortcut on the Dashboard. Learn more about trigger rates here.
Known Limitations
Currently, Ownwell supports single, amortizing mortgages from broker channel lenders. It does not yet support:
Interest-only mortgages.
Reverse mortgages.
Private mortgages.
Multiple-component mortgages. We will be adding support for HELOCs in 2025.
Semi-monthly or accelerated weekly payment frequencies. These are coming early in 2025.