Roll Payment

Introduction

In a typical loan, the payment amount is calculated using the term of the loan, the present value of the loan (loan amount), and the interest rate of the loan. But sometimes it’s helpful to tell the system the payment amount you want and have it fill in one of the other loan terms in order to calculate the payment. You can do this using the Roll Payment function in LMS.

Using Roll Payments

To use the roll payment option, navigate to Account Setup > Loan Terms inside of a loan account. If the account is activated, inactivate it so you can see the button.

Click 'TIL Tools', and select the 'Roll Payment' option.

Here you can enter the desired payment (this is what you want the payment to be after the roll), how to solve for payment, and which escrow buckets the final payment amount will include.

Solve With might be a little confusing, so here is a list of the options and what they mean:

Underwriting/Refinance Fee – This option will compute an underwriting fee (which is added to the principal balance when calculating payment) that should be added in order to hit your desired payment amount.

Interest Rate – This computes an interest rate up to four decimal places that will help you hit your desired payment amount. This may not get you to the exact payment amount you entered. This option uses an iterative calculation (it has to run the calculation several times to get the best result) so it may be slower than the other options.

Whole Term – This will only add or subtract whole numbers from the term to try and hit the target payment amount. Because of that, this method won’t get you to the exact payment amount except in very rare circumstances.

Term Exact – This will add whatever fraction of a term is necessary to hit the target payment amount.

Whole Term with Fee – This will round to the nearest whole-number payment term and then add an underwriting fee to hit your target payment amount.

Once you have entered the information for your payment roll, click the 'Roll Payment' button.


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