What is a Rate Spread Calculator?


The Rate Spread Calculator is an online tool provided by the Federal Financial Institutions Examination Council (FFIEC) that helps bankers compare a loan’s APR to the national average, based on the set of terms offered in a HMDA-reportable loan.

Why Do Bankers Use the Rate Spread Calculator?

Rate spread is just one of many data points that banks must include in their Loan Application Register (LAR) to ensure ongoing HMDA compliance. The LAR asks for both demographic information about the loan applicant as well as loan terms offered by the bank. Using the Rate Spread Calculator allows the bank to generate a rate spread data point to input into the LAR.

Rate Spread Calculator Fields

The Rate Spread Calculator requires several data points to generate an accurate rate spread, including:

  • Amortization type
  • Lock-in date
  • APR
  • Term information
  • Lien status information

Rate Spread Calculator Options

Banks can use one of two calculator tool options to pull information for their LAR reporting

Tool for a single loan: The calculator at the bottom of the page allows bankers to calculate each rate spread separately.

Tool for a batch of loans: This calculator makes it possible to determine multiple rate spreads at once.

Looking for additional banking information?

Browse our banking definitions page for more terminology.

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