1. Loan Collection User Guide
  2. Tools
  3. Loan Calculator
  4. Parameters
  5. Calculating Blended Rate

11.1.1.5 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. Click Loan Calculator tab.
  2. In the Parameters section, select Calculate Blended Rate. The system enables the Advances section.
  3. Click Add and maintain the following details:

    Table 11-2 Calculating Blended Rate

    Field Do this
    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 Navigation chapter.
  5. Specify the required information. (Refer the section Calculating Loan Payment in this chapter for more information).
  6. After you specify all the required information click calculate. The system computes the blended rate of contracts.
    You 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)

Parent topic: Parameters