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Loan Change Interest Rate

Main Menu - Loan - Change Interest Rate

This screen is used to change the interest rate on a loan. This is available for active loans only. Rates may be changed for an effective date after the last payment made date. If the effective date is on or before the last scheduled payment for the loan, a new payment will be calculated for the remaining scheduled payment(s). This new payment is calculated from the amortization schedule's beginning principal balance for the first scheduled payment at or after the new rate's effective date, the current end value (normally zero), the remaining term (# of payments), and the new interest rate.

Layout / How To
The current interest rate information is displayed at the top of the screen. After that, you will see one of two panels, depending on whether a rate change is pending.

Pending Panel
If an interest rate effective date has not yet arrived, then you will see this panel. You have the ability to delete (abort) a rate change, right up to the day before the change becomes effective. Once it becomes effective, it cannot be deleted.

Pending rate changes cannot be changed. If the pending rate or effective date needs to be changed, you must delete the pending change and then add a new rate change with the correct information.

New Rate Details Panel
This panel will display when there are no pending interest rates changes. To add an interest rate change:

1. Select the effective date for the change. Tomorrow's date will be defaulted in the field.

2. Provide the new rate. For example, a rate of 12.125% would be entered as 12.125. The rate must be from 0 to 999.99999.

3. Provide a reason for the change. This is not required, but recommended.

4. Click the add the new rate button.

Whenever a rate is added or deleted, information regarding the change is added to the contact history for the deal.