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Terms Tab

The Terms tab contains all the financial details of the loan or account, including amounts, rates, fees, and payment information.

Tab Overview​

The Terms tab includes:

SectionDescription
Loan/Account DetailsProduct type, amount, purpose
Rate InformationInterest rate, APR, rate type
Payment TermsTerm length, payment amount, frequency
FeesOrigination fees, closing costs
InsuranceOptional insurance products
Approval TermsFinal approved terms (if different)

Loan Details​

Basic Information​

FieldDescriptionExample
ProductLoan or account typePersonal Loan
Requested AmountAmount applicant requested$15,000
Approved AmountFinal approved amount$12,000
PurposeLoan purposeDebt Consolidation
Origination DateWhen loan originates01/15/2024
First Payment DateFirst payment due02/15/2024

Loan Purpose Codes​

Common loan purposes:

CodePurposeDescription
DCDebt ConsolidationPaying off other debts
HIHome ImprovementHome repairs/upgrades
APAuto PurchaseVehicle purchase
MEMedical ExpensesHealthcare costs
EDEducationTuition, school expenses
OTOtherGeneral purpose

Rate Information​

Interest Rate Fields​

FieldDescriptionExample
Interest RateBase interest rate8.99%
APRAnnual Percentage Rate9.25%
Rate TypeFixed or VariableFixed
IndexFor variable ratesPrime Rate
MarginFor variable rates+3.00%
FloorMinimum rate5.00%
CeilingMaximum rate18.00%

Rate Types​

TypeDescription
FixedRate stays same for loan term
VariableRate changes with market index
PromotionalIntroductory rate that changes
TieredDifferent rates for different balances

APR Calculation​

The APR includes:

  • Interest rate
  • Origination fees
  • Processing fees
  • Other finance charges
APR = Interest Rate + (Total Fees ÷ Loan Amount × 100)

Payment Terms​

Payment Information​

FieldDescriptionExample
TermLoan duration60 months
Payment AmountMonthly payment$304.17
Payment FrequencyHow oftenMonthly
Total PaymentsTotal over life$18,250.20
Total InterestInterest paid$3,250.20

Payment Frequency Options​

FrequencyPayments/YearNotes
Monthly12Most common
Bi-Weekly26Every 2 weeks
Semi-Monthly241st and 15th
Weekly52Every week

Payment Calculator​

The system calculates payments automatically:

Given: $15,000 at 8.99% for 60 months

Monthly Payment = P × [r(1+r)^n] / [(1+r)^n – 1]

Where:
P = Principal ($15,000)
r = Monthly rate (8.99% ÷ 12 = 0.749%)
n = Number of payments (60)

Monthly Payment = $311.38

Fees​

Common Fee Types​

FeeDescriptionTypical Amount
Origination FeeLoan setup fee1-5% of loan
Processing FeeAdministrative fee$50-$200
Document FeeDocument preparation$25-$100
Credit Report FeeCredit pull cost$25-$50
Title FeeFor secured loansVaries
Recording FeeGovernment filingVaries by state

Fee Calculations​

CalculationMethod
FinancedAdded to loan balance
Paid at ClosingDue at loan funding
WaivedFee not charged
DiscountedReduced fee amount

Total Cost Summary​

Loan Amount:           $15,000.00
Origination Fee:       +  $450.00 (3%)
Processing Fee:        +   $99.00
───────────────────────────────────
Total Financed:        $15,549.00
Total Interest:        + $3,576.22
───────────────────────────────────
Total Cost of Loan:    $19,125.22

Insurance Products​

Optional Insurance​

ProductCoverageBenefit
Credit LifePays loan if borrower diesLoan payoff
Credit DisabilityPays if borrower disabledMonthly payments
GAP InsuranceVehicle value gapFor auto loans
MBIMechanical breakdownVehicle repairs

Insurance Fields​

FieldDescription
Product SelectedWhich insurance chosen
Coverage AmountAmount of coverage
PremiumInsurance cost
Payment MethodSingle or monthly premium
Insurance Disclosure

Insurance products are optional. The applicant must consent to insurance coverage.

Counter Offers​

When approved terms differ from requested:

Counter Offer Scenarios​

ScenarioExample
Lower AmountRequested $20K, approved $15K
Higher RateRequested 7.99%, approved 9.99%
Shorter TermRequested 72mo, approved 60mo
Additional ConditionsRequires collateral

Presenting Counter Offers​

  1. System generates counter offer terms
  2. Processor reviews and sends to applicant
  3. Applicant accepts, declines, or negotiates
  4. If accepted, terms are updated

Counter Offer Status​

StatusMeaning
PendingAwaiting applicant response
AcceptedApplicant agreed to terms
DeclinedApplicant rejected offer
ExpiredOffer no longer valid

Rate Lock​

Rate Lock Feature​

FieldDescription
Lock StatusLocked, Unlocked, Expired
Lock DateWhen rate was locked
Lock ExpirationWhen lock expires
Lock PeriodDuration of lock (e.g., 30 days)

Lock Actions​

ActionWhen to Use
Lock RateSecure current rate
Extend LockExtend expiring lock
RelockLock at new rate
FloatDon't lock, market rate

Approval Workflow​

Terms Approval​

  1. Initial terms entered/calculated
  2. Underwriting reviews terms
  3. Terms approved, modified, or declined
  4. Approved terms displayed
  5. Applicant acceptance required

Term Changes After Approval​

Changes after approval may require:

  • Re-underwriting
  • New disclosures
  • Applicant re-consent
  • Supervisor approval

Calculations​

Amortization Schedule​

View full payment schedule:

  1. Click View Amortization
  2. See each payment breakdown:
    • Payment number
    • Payment date
    • Principal portion
    • Interest portion
    • Remaining balance

What-If Scenarios​

Model different scenarios:

  1. Click Calculator or What-If
  2. Adjust amount, rate, or term
  3. See updated payment
  4. Compare scenarios side-by-side

Best Practices​

Rate Selection​

  • Verify rate is appropriate for product and risk
  • Check for applicable discounts
  • Confirm rate type (fixed vs. variable)
  • Document rate source

Fee Compliance​

  • Ensure fees are within policy limits
  • Disclose all fees properly
  • Apply waivers consistently
  • Document fee exceptions

Payment Setup​

  • Verify payment date is convenient for borrower
  • Confirm payment frequency preference
  • Calculate payoff correctly
  • Set up automatic payments if requested

Continue to Credit Report Tab to learn about credit data and scores.

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