Regarding mortgages, pricing accuracy is the key to providing a successful loan. Borrowers expect lenders to provide accurate, customized rates and terms quickly; go too slowly, and they'll find a new option.

A quality mortgage pricing engine can make all the difference in creating an excellent loan experience. It helps lenders form competitive terms without sacrificing accuracy, ensuring borrowers get the best deal for their needs.

What is a Pricing Engine, and Why do I Need One?

A mortgage product pricing engine (PPE) allows lenders to calculate loan terms. The engine is powered by algorithms and provides custom pricing based on borrower data, real-time market data, and the lender’s preferences.

Lenders can generate new rates instantly while satisfying a borrower’s need for real-time results. Using a mortgage pricing engine eliminates the inaccuracies inherent in traditional manual loan term calculation methods. You can confidently approve more loans and still protect overall profitability.

Ready to say goodbye to pricing loans the old fashioned way? Discover Sonar's PPE.

Qualities of a Top Tier Mortgage Pricing Engine

Below, we’ll explore the main qualities that make up a top-tier mortgage pricing engine.


Accuracy is paramount when it comes to pricing loans. Borrowers must get presented with terms they can trust. Inaccuracies can lead to lost business, a bad reputation, and even legal action.

For example, if you quote an inaccurate rate, your borrower may be charged unfair closing costs or have to pay higher monthly payments than expected. Some borrowers have been overcharged more than $30,000. A mistake of this caliber erodes your reputation and makes it hard to maintain business.

To avoid this, use advanced algorithms and data analytics to calculate loan terms accurately. With a quality loan pricing engine, you can trust that your quotes are mistake-free. Both your clients and your profit margin are protected.


The ability to customize loan terms is another crucial component of a successful pricing engine. Rates and terms need to align with your goals and risk profile.

For instance, you may want to offer different rate lock lengths or adjust the pricing depending on the borrower’s background. Customization allows you to meet the demands of modern borrowers by providing a tailored loan experience.

Consider a borrower who needs a more extended closing period. You should offer an extension on their rate lock period if they are willing to pay a higher rate. Both parties benefit from this customization; the borrower gets terms adapted to their needs, and the lender can remain profitable.


Speed matters when it comes to delivering competitive loan terms. The faster you can provide pricing, the more likely you will acquire a business and satisfy customers.

Using a mortgage pricing engine like Sonar’s that integrates with other lending tools, such as loan origination systems (LOS) and point of sale (POS) software, can further speed up your lending process. When mortgage systems get integrated, you can find the data you need in seconds.


Transparency in your mortgage pricing engine builds trust between lenders and borrowers and helps eradicate unfair practices. Clear documentation and ready communication let borrowers feel secure in their decisions.

Without transparency, borrowers may not be aware of higher rates or fees. This lack of clarity can lead to costly legal action. In December 2022, Wells Fargo agreed to pay $3.7 billion in settlement with the Consumer Financial Protection Bureau. The bank was accused of predatory and deceptive practices regarding mortgages and other loans.

By choosing an open and transparent pricing engine, you can avoid litigation and put borrowers at ease.

Revolutionize how you provide pricing for your borrowers. Schedule a demo today.

Top Features of a Mortgage PPE

Search for pricing engines with features that can help your business.

Options for borrowers are essential because the flexibility lets you originate loans that satisfy distinct needs. An ability to compare prices will help you find the best options. Rate lock capabilities are essential for locking in attractive rates with a higher certainty of performance, while integration capabilities let you work with your LOS and POS.

These features help you offer an optimized loan experience that puts borrower satisfaction first. Using the right pricing engine, you can keep your business profitable and compliant.

Choosing Your Pricing Engine

When selecting a mortgage PPE provider, thorough due diligence is a must. Ask for references and review customer feedback. What do other lenders think about the software?

Next, request a demonstration and test the software’s features for yourself. Remember to ask about onboarding support for your team. A sophisticated platform is useless if no one understands how it works.

You can find the right pricing engine for your business model by following these steps.

Sonar: Your All-in-One Loan Experience Platform

Sonar is changing the game for mortgage lenders and brokers. Our system combines LOS and POS capabilities to deliver a streamlined mortgage process.

Sonar is well on its way to integrating a mortgage pricing engine. This capability will make Sonar a trustworthy all-in-one loan platform, providing you with the tools to manage mortgages from start to finish quickly. With Sonar, you can transform your workflow.

Secure a brighter future for both your borrowers and your bottom line. Schedule a demo today to discover how Sonar is revolutionizing the origination process.