NetLoan - Pay Off Remaining Interest
Pay Off Remaining Interest
Use Case: The Adjust Loan Terms modification can be used to add a payment that reflects a one-time additional payment toward the outstanding interest as of a specific date
Prerequisites: Loan modifications must be entered in NetLoan prior to running month-end amortization for the period the new payment falls into
STEP-BY-STEP PROCESS
- Navigate to a loan record where the modification is to be recorded and click the Modify Loan button
- On the Loan Modification click the down arrow on the Modification Type field and select Adjust Loan Terms
- Next, use the Pay Off Remaining Interest payment type, select an effective date for the payment, and if the payment is a one-time payment select One-Time in the payment frequency field, otherwise select one of the other frequency options that should apply. Select the Add button to confirm the payment you entered.
- If you need to add any additional payments do so now before completing the modification.
- After double-checking inputs for the modification, click Modify Loan
- You will be navigated back to the loan record where you can refresh until the refresh button disappears and the schedule has been updated.
- Note the additional schedule line for the interest payment on the effective modification date that pays off any accrued and current interest.
- The NetLoan Payment record(s) will be saved on the Payments subtab of the loan to save historical payment changes.
- If a payment modification was entered in error you can select the Reverse Modification button that is located at the top of the loan record. This will reverse the modification you just made. Check out our Modification Reversals article for more information. Note: If the amortization entries for that month have been run you will no longer have the option to reverse the modification.