9.1.1.3 Calculating Term

This topic provides information on the calculating term section.

The Calculate Term option back-calculates the term and APR using the amount financed and standard payment. 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 Term. The system enables the required fields based on this selection.
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 term is calculated:

   • Creating an amortized schedule of payments (Applications screen)
   • Copying the term calculations to the Decision link (underwriting)
   • Copying the interest calculations to the Contract link (funding)

   The system will use this information during the funding process when user select an instrument.