NetLoan - Manage Index Rate Types
When variable loan payments are dependent on an index or rate, NetLoan can capture the index or rate upon which the loan rate is dependent. The list of rates available for selection is managed within NetLoan setup center category.
STEP BY STEP PROCESS
- Create a new index or rate by navigating to the Index Rate List page through NetLoan > NetLoan Setup > Manage Index Rates and select the NetLoan Index Rates list
- Select New NetLoan Index Rates
- Enter the Rate Index Name.
- Select the Rates tab and enter the Effective Date and Annual Percentage Rate applicable to the rate index. Rates will be set up and added moving forward using this tab.
- Click Save.
- Select Initiate Sync to create rate records for each loan tagged with the Index Rate Type.
If a loan is commenced prior to the first Effective Date on the rate index, NetLoan will use the Annual Percentage Rate field as the interest rate from the beginning of the loan to the effective date of the first rate index rate.
After the rates are created for each loan record, reference the Update Loan Schedules article or the Automatic Modifications article to update loan amortization schedules.