Create a Schedule Roll
Introduction
Most lending software will calculate a loan repayment schedule in the simplest way possible. It usually works something like what we show in our Amortized Loan Overview article: a typical repayment schedule has uniform payments and a single interest rate that applies in every payment period. Sometimes, though, a lender needs more flexibility in their amortization schedules. This includes the option to change the payment amount or the interest rate in a specific payment period. The schedule roll makes this possible. In this article, we will explain in more depth what a schedule roll is and how to create a new schedule roll in LMS.
What is a Schedule Roll?
Roll schedule (verb) and schedule roll (noun) are terms used in LoanPro to describe a change to the calculated payment schedule on a loan. Custom payment schedules are created one line at a time.
A schedule roll lets you change the payment schedule from payment period to payment period. This is achieved by entering lines that will include the number of payments the line will apply to, the interest rate, and a payment amount for those lines. You also have the option to enter a principal balance that the loan should be at when the payments in the schedule line are made. If you enter a balance, the schedule line will calculate the payment amount that will get the principal balance there.
Creating a new Schedule Roll
To create a new schedule roll in LMS, navigate within a specific loan to Account Setup > Setup Terms. This area is used to set up the loan. In the 'Summary' section at the bottom of this page, you will see five blue advanced options. Clicking 'Schedule Tools' will display a dropdown with the options of 'Roll Schedule', 'Force', and 'Round'. Select 'Roll Schedule' to create a new schedule.
Create a Schedule Line
Selecting 'Roll Schedule' will open the transactions history page. On this page, click 'New Schedule Line' in the top right of the screen. You can create as many schedule lines as you need to customize the schedule.
For each schedule line, enter a minimum of the Term, Annual Interest Rate, and Payment Amount.
Explanation of Schedule Line Fields
Field 
Description 
Term 
This is the number of payment periods for which the rest of the settings for this current schedule line will apply. 
Rate 
This is the interest rate that will apply over the term for this schedule line. 
Solve Using 
This option works in conjunction with the Amount field and will let you choose how the payment amount will be calculated for the payments in this schedule line. The options are:

Amount/Percent/Payment Calculation Terms 
This field works in conjunction with the "Solve Using" field and the Type. Here you enter the balance, payment amount, or number of payment periods depending on your Solve Using and type selections. 
Type 
This option is only available if you choose Payment from the Solve Using dropdown. Your selection here can change the Amount/Percent/Payment Calc Terms field.

Force Balloon Payment 
This option lets you choose to force a balloon payment on the loan after the schedule line. This will mean that the next payment after the schedule line is completed will cover the entire outstanding amount on the loan at that point. 
Enter as many schedule lines as you need to complete your payment schedule.
If you don’t enter enough schedule lines to cover the term of the loan, the payment schedule in the last schedule line will continue until the loan reaches a $0 principal balance. You can also set the 'Last as Final' dropdown to 'Yes' to choose to make the last payment for the final schedule line grow or shrink to accommodate late or missed payments so that it will truly be the last payment.
Once you have entered all the schedule lines you want for your Schedule Roll, click Save.
Example
Let’s say that you want to give a 12month loan with a 3month introductory interest rate of 5%; but after the first 3 months, the interest rate will be 15%. A schedule roll can accomplish this. To create the schedule roll in this example, navigate to Account Setup > Setup Terms inside a specific loan.
Click 'Schedule Tools' and choose 'Roll Schedule'.
Now, click 'New Schedule Line' to add the first new schedule line. Enter 3 for the term, since the introductory interest rate will last for 3 months. Then, enter 5 for the rate as the introductory 5% interest rate. Lastly, solve using Payment.
Select 'Advanced Schedule' from the 'Type' dropdown. This will change the 'Amount' field label to 'Payment Calculation Term'.
Since we want to calculate a payment amount that will pay off the loan in 12 payments, enter 12 into this field.
Click Save to save the schedule line.
Now, click 'New Schedule Line' to enter the second schedule line.
For the second schedule line, enter a term of 9 since there will be 12 periods in this loan and 3 of them will be taken up by the first schedule line. Enter 15 as the Annual Interest Rate.
Now, instead of solving for payment, we will solve for a balance of $0. Choose 'Balance' from the 'Solve Using' dropdown.
Enter 0 in the 'Balance' field to solve for a $0 balance.
Click Save to save the schedule line.
Common Uses and Customer Questions
Lenders generally use the schedule roll feature to increase the flexibility of their loan products. They may choose to start a loan with a promotional interest rate or a lower payment amount. A lender may also want to solve for specific balance during the loan. For example, if a lender wants the borrower to have paid off onethird of the principal after the first 3 payments, they can solve for a balance that is twothirds of the initial principal amount.
Can I use the schedule roll to match an unusual contract? Usually, yes. If you have a contract with changing payment amounts, the schedule roll is one feature that can get you close to matching a contract. You may also want to change the loan calculation settings, or use the change due date feature.
Can payment amounts change automatically during the loan term either based on payments that have been made or the outstanding principal balance? No. Dynamic payment amounts is a feature that is typically referred to as payment recasting, and LMS does not support it.