9.1.1.2 Calculating Interest Rates

This topic provides information on the calculating interest rates section.

The Calculate Interest Rate option back-calculates the interest rate and APR using the amount financed, standard payment and terms. It also provides the amortization schedule of the loan.

To calculate an Interest Rate

1. On the Tools, click Tools. Under Tools, click Loan Calculator.
2. In the Parameters section, select Calculate Interest Rate.
3. Specify the required information. (Refer the section Calculating Payment in this chapter for more information).
4. After user specify all the required information click calculate. The system computes the payment change schedule.
   User can perform the following activities when the Interest Rate is calculated:

   • Creating an amortized schedule of payments (Applications screen)
   • Copying the Interest Rate Calculations to the Decision tab (underwriting)
   • Copying the Interest Calculations to the Contract tab (funding)