Point User Guide 413
Amortization schedules
6 In the 1stChange__mths field, enter the number of months until the first percentage
change will occur (for example, if the first adjustment is scheduled to occur in 24
months, enter that number here.)
7 In the
AdjCap__% field, enter the maximum percentage that the rate will increase for
each period.
8 In the
AdjPeriod__mths field, enter the number of months between each rate
adjustment for the remainder of the loan (for example, every six months).
9 In the
LifeCap__%field, enter the maximum percentage to which the rate will increase
for the life of the loan.
10 In the
Margin__% and Index__%fields, enter the margin and index based your
lender’s loan program. To show a worst case scenario, leave the
Index field blank.
11 Complete the Payment Adjustments part of the
Potential Negative Amortization
section.
When the
Interest Only During Initial Pmt Rate Period is checked, it functions the
same as the Interest Only __ months field when it is completed. When it is not checked,
the Initial Payment Rate period is not based purely on the interest. Only after the initial
payment rate period has been satisfied will the
InterestOnly__mths field take effect.
a In the Adj Cap__% field, enter the percent that payment should increase for a
certain amount of time (for example, 7.5%)
b In the Adj Period__mths field, enter the number of months that the payment
should change.
c In the
RecastPd/Stop__/__mths fields, enter the number of months until the loan
is re-amortized to pay off the loan. Also enter when the negative amortization will
stop. These numbers are usually the same.
d In the
MaxBal__%field, enter the percentage rate of the original balance that the
principal balance can reach (for example 110%).
e Click the Calculate button to display the payment schedule.
f Click the Monthly Sch button to view a monthly payment schedule.
Customizing payment schedules
When you click the Calculate button and a payment schedule is displayed on the screen,
select the
Customize Payment Schedule check box to customize the schedule. You can
change the number of payments, the interest rate, and the monthly payment amounts. The
result of any customization is reflected in the remaining amounts in the Balance column
and
TotalPmts field.
You can customize the payment schedule automatically or manually. For example, you
can show a prospect the effect of paying an extra amount on a regular basis, such as
$500 every six months.
Customizing automatically
When you select the Customize Payment Schedule check box, the grayed-out fields in the
Payment Schedule section of the Amortization Schedule screen enable for editing.
1 To add an automatic payment, complete the
ExtraPaymentfields, including the
amount and the frequency of the payment.
2 Click the Calculate button to recalculate the amortization figures.
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