9.1.1.5 Calculating Blended Rate

This topic provides information on the calculating blended rate.

The Blended Rate option calculates a combined single rate (Blended Rate) for multiple amounts each of at different rates.

On selecting this option, system displays the Advances section to add multiple records to derive the blended rate. It also provides the amortization schedule of the loan.

To calculate an Blended Rate,

1. On the Tools, click Tools. Under Tools, click Loan Calculator.
2. In the Parameters section, select Calculate Blended Rate. The system enables the Advances section.
3. Click Add and maintain the following details:

   Table 9-2 Calculating Blended Rate

   Field	Description
   Amt Financed	Specify the financed amount.
   PrePaid Fees	Specify the pre-paid fees.
   Financed Fees	Specify the financed fees.
   Balloon Pmt Amt	Specify the balloon payment amount.
   Rate	Specify the rate.
   Payment Amt	The system displays the calculated payment amount on clicking Calculate button.
   Interest Amt	The system displays the calculated interest amount on clicking Calculate button.
   Action	Click add button to add next contract details.

4. Perform any of the Basic Actions mentioned in Preface.
5. Specify the required information. (Refer the section Calculating Payment in this chapter for more information).
6. After user specify all the required information click Calculate. The system computes the blended rate of contracts.
   User can perform the following activities when the Blended Rate is calculated:

   • Creating an amortized schedule of payments (Applications)
   • Copying the loan amount calculations to the Decision link (underwriting)
   • Copying the loan amount calculations to the Contract link (funding)