LOAN ENTRY, ADJUSTMENT TO CURRENT LOAN BALANCE, INSURANCE ENTRY WINDOWS
NEW or EDIT. See EDIT below for specific differences between New and Edit.
CANCEL Button returns you to the previous General Information Window.
REQUIRED FIELDS: Loan Number (an alpha-numeric field), Loan Amount (must be greater than 'Ø), Annual Percentage Rate as a percent (i.e 15.5=15.5% NOT .155), Number of Payments, Payment Amount, Loan Date (enter as Ø1Ø192 or Ø1.Ø1.92 or Ø1/Ø1/92 = Ø1/Ø1/92---DO NOT enter as Ø1-Ø1-92), First Due Date, Purchase Price (at least equal to loan amount-never greater).
Before 'Save', if NOT purchased, the Loan Amount and Purchase Price MUST ALWAYS be equal!
PURCHASE PRICE
The only time 'Purchase Price' is less than the 'Loan Amount' (it can never be greaster) is when the loan is purchased for less than the principle loan amount.
Discounts Earned, Unrealized Discounts, Discount Ratio, and Fixed Monthly Amount, all apply only to a Purchased Loan. (Ø amounts are defaulted until a lesser purchase price is entered and the TAP key is then used.)
Definitions:
UNREALIZED DISCOUNT: The difference between the Loan Amount and the Purchase Price is a portion of the principle of the loan that is actually income; but not as yet realized since it has not been collected.
DISCOUNTS EARNED: As the principle is received with each payment, a defined portion is now 'other income' usually called 'Discounts Earned' on financial records. The method of amortization is defaulted
as Discount Ratio. You can choose Fixed Monthly Amount as an option (less preferred method).
INSURANCE Button: Clicking this button gives you an entry form to record insurance information. To SAVE Name and Expiration Date are required entries. The last field Payment Portion is the amount included in the monthly payment.
AUTOMATIC CALCULATIONS
When you 'TAB' from 'Loan Amount', 'Number of Payments', and 'Purchase Price' the program does specific calculations, the accuracy of results dependent upon certain required fields to be entered and having different radio buttons either 'on' or 'off'.
A special feature when either entering a 'NEW' loan or 'EDIT'ing an existing loan without any payments yet applied, is the 'Payment Amount' will calculate for you. To receive the correct amortized payment, enter
Loan Amount, Annual Interest Rate and Number of Payments (all three required to calcuate proper payment amount). 'Tab' from 'Number of Payments' generates the 'Payment Amount'. If necessary, the amount can be overwritten and a forced amount can be entered. Take care not to tab through Number of Payments as it will again recalculate the payment.
Also, once the three fields, Loan Amount, Anual Interest Rate and Number of Payments, have been entered, you can select any of the three radio buttons relating to Interest at the top and the payment will recalculate.
Care must be taken once you have decided on a payment amount not to accidently override it with this feature. It is best to decide which method of Interest is calculated before entering loan data, but not necessary.
Every time you 'Tab' through Loan Amount, Number of Payments, or Purchase Price or select any radio , a calculation takes place! Make sure before you 'Save' to check the accuracy of all fields including totals.
EDIT WITH PAYMENTS ALREADY ENTERED INTO THE PAYMENT FILE
Automatic Payment Amount calculation is available with the edit window through the Adjustment Button. Set Interest Rate and/or Number of Payments prior to selecting the Adjustment Button. To calculate the new payment amount, enter Date of Adjustment, Current Loan Amount Adjustment, Reason, then click on the 'YES' radio button.
This method only applies to current loan balance and future only payments. The original loan amount cannot be changed once an adjustment has been saved.
If you are correcting an error in the annual interest rate and need both to recalcuate interest for all entered payments plus reset new payment for future activity, first enter the new interest rate and save selecting ALL when asked. The entered payments will re-calculate for the new interest. Second, re-edit loan and select the adjustment button. Enter Date, 0 amount, and reason. Select the YES payment calcuation and save. You are now reset with the corrected interest and a new payment.
YOU CAN NOT EDIT A SAVED ADJUSTMENT. You will have to make a corrected entry to reverse an incorrect adjustment. DELETE of adjustments takes place only when the entire loan record is deleted.
If this loan is a purchased loan with an amortization sequence taking place, the amount amortized will also be recalculated at this time.
If you need to change the Fixed Monthly Amount to an Amount other than defaulted, you can override
defaulted amount with desired amount. This choice should be made BEFORE adjustments entries are being considered.
How you edit this loan can either effect ALL or FUTURE ONLY payments. If all payments are still on file and you are correcting an original loan entry error, all payments can be updated to reflect the correction made. The choice comes after you select 'Save'.
If you do not want to effect all payments, just new payments, that choice is availble after 'Save'.
Any of four conditions can make it no longer possible to recalculate all payments on file in relation to the edited field(s) in the loan entry window:
1-Save an adjustment to loan balance or recalculate payment through the Adjustment button.
2-Save an adjustment to the last payment in payments entry window.
3-Select Future Only after save from loan entry window
4-Once you delete payments through the 'Payments-File Purge' option.
