The Loan Amortization program is used to calculate a monthly or yearly amortization schedule based on several variables including interest rate, payment or loan amount, and loan life. Enter the payment amount to calculate the loan amount or vice versa. The amortization schedules show payment amount, interest and principal paid, balance due, yearly and grand totals.
To begin Amortization from the Main Menu, type AMORT or 12. If you are not at the Main Menu, type AMORT at any system prompt. The Loan Amortization Menu will display:
To find the payment enter ............ (PAY)
To find the loan amount enter ........ (AMT)
If you already know both, enter ...... (NONE)
BORIS will calculate the loan amount, the payment amount, or both. If you want to find the payment, you must enter the loan amount, and if you want to find the loan
amount, you must enter the payment.
Use the following formats when entering information. Enter:
à dollar amounts with decimals, if applicable-- $1750.26 as 1750.26, and enter $1000.00 as 1000.
à Number of Payments Per Year-- must be 1, 2, 3, 4, 6, or 12.
à Loan Life Years in whole years-- 10 for 10 years, etc.
à Loan Life Months-- enter additional months of the loan if applicable, or Press [ENTER].
à Interest Rate-- enter 10% as 10, 10.5% as 10.5, 10.725% as 10.725, etc.
à Amortization Different than Loan Life? - enter Y to enter amortization period, or enter N.
| Note: | A shorter Amortization period will effectively shorten the loan life. A longer amortization period will lower the monthly payments and result in a balloon payment at the end of the loan life. |
à Contract and First Payment Dates - Do not enter dashes ( - ) or slashes ( / ) in dates. The contract date must be prior to the payment date.
à Yearly Summary or Monthly Summary: Enter Y to view only the Yearly Summary. Enter M to view only the Monthly Summary with year-end totals.
à Borrower, Lender, Requestor Names - Enter up to 20 characters for each name. Press [ENTER] to bypass these prompts if you wish.
Once you have entered information on the amortization, the following screen is displayed for your review and revisions. In this example, loan amount has been entered, and the computer will calculate the payment amount. The loan of $50,000 is to be amortized over 30 years. At the end of ten years, however, a balloon payment for the remaining balance is due.
*** LOAN AMORTIZATION *** 10/01/91
1. Payment Amount:
2. Payments Per Year: 12
3. Loan Amount: 50,000.00
4. Loan Life Years: 10
5. Loan Life Months:
6. Interest Rate: 12.500
7. Amortization Different than Loan Life: Y
8. Amortization Period Years: 30
9. Amortization Period Months:
10. Contract Date: 10/01/91
11. First Payment Date: 11/01/91
12. Yearly Summary or Monthly Summary: Y
13. Borrower Name: JACQUELINE JONES
14. Lender Name: FIRST NATIONAL BANK
15. Requestor Name: BEATRICE BROWN
Enter number to revise or press ENTER to continue:
| Making Revisions: | To change information, enter the line number of the item to be revised. BORIS will prompt you for the correct information. |
*** AMORTIZATION SCHEDULE *** 10/01/91
Lender: FIRST NATIONAL BANK
Borrower: JACQUELINE JONES
Requested By: BEATRICE BROWN
Loan Amount: $50,000.00 Contract Date: 10/01/91
Interest Rate: 12.500% Payment Amount: $533.63
** Information deemed reliable but not guaranteed **
Enter R to revise or press ENTER to continue:
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