Calculate Interest for Mortgage Payoff

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UMBRLNCL-03 Calculate Interest for Mortgage Payoff 3903

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Access this screen from the Prepare Loan for Payoff screen after you have clicked the Adjust this amount button next to Interest Due.

This screen is used to make any adjustments to the interest due on the loan.

The system will automatically figure out if the member owes additional interest, so you may not need to make any adjustments on this screen. But, there could be instances where the interest due amount should be adjusted, such as if the payoff check does not match the calculated payoff or the member is owed interest.

The Additional interest amount is calculated by checking the number of days between the current date and the last interest accrued through date on the loan. A per diem calculation is used for the remaining days (i.e. 4 days at .473 per diem).

· NOTE: The adjusted interest due amount may include additional interest due or a refund of interest. This is because 360 mortgage loans only accrue interest once a month and the system is comparing the “interest accrued through” date to the current date and either adding or subtracting the appropriate interest. Refer to the examples below.

If you would like to adjust the interest, enter the amount in the Interest adjustment amount field. Use + to increase the interest amount and - to decrease the interest amount.

Remember that you must use Enter, then F5-Save to return to the main screen and apply the adjusted interest amount to the Total Calculated Payoff.

Example 1 – Additional Interest Due

In this example, interest was calculated on Aug. 20th (day to calculate interest on the member file is the 20th of the month) and it is Sept 3rd. Interest has been accrued through Aug. 31st. The number of days between Aug 31st and Sept 3rd is 3 days, therefore 3 days of interest is calculated at the appropriate per diem (3 days at 24.949).

Example 2 – Refund Interest Paid

In this example, interest was calculated on Aug 20th (day to calculate interest on the member file is the 20th of the month) and it is July 26th. Interest has been accrued through July 31st. The number of days is counted back from the calendar date month end (31-26=5). Since interest accrued on the 20th for the current month (July 1-31st), the member is owed 5 days of interest (5 days at 19.036).

Field Descriptions

Field Name	Description
Current balance	The current principal balance on the loan.
Interest due through XX/XX/XXXX	The interest due amount from the CU*BASE loan record along with the “interest accrued through” date.
Additional interest amount (X days at XX.XXX per diem)	The calculated amount of interest since the last interest accrued through date. The number of days and per diem are in parenthesis. Note: It is possible have a negative number of days if interest has been accrued for the current month and it is before the “interest accrued through” date.
Interest adjustment amount	The amount of the interest adjustment which will be added or subtracted from the Adjusted interest due. A + indicates to add the amount to interest due and a – indicates to subtract the amount from interest due.
Adjusted interest due	The adjusted interest due amount. This amount will appear in the “Adjusted” Interest Due column on the main screen after you use F5-Save. Calculation for Adjusted interest due is as follows: Interest Due + Additional Interest amount +/- Interest adjustment amount OR Interest Due – Refund interest amount +/- Interest Adjustment amount
Total interest adjustment	The total amount of the interest adjustment that will be posted as a separate transaction on the member loan.
Transaction description	The primary transaction description that defaults to ADJUST INTEREST DUE. The description can be changed.
Additional description	The secondary transaction description that defaults to FOR LOAN PAYOFF AS OF XX/XX/XXXX. The description can be changed.