Within the Loan Editor, a user may assign a loan with a fee. Loan Fee may be characterized in different ways. To address all sorts of fees in the loan market, we developed a set of fee enhancements.

  • Net Rate: Automatically calculated out of Gross rate and Fee.
  • Fee as fixed $ Amount
  • Allocated Level Pay loan, may have 3 different types of fees associated with it:

1. A Fee as %,  2. $ Amount, 3. Allocated Level Pay fee

Net Rate:

The user may state a loan rate as Gross Rate or Net Rate, together with Fee (% denominated). It is possible to calculate the other rate.

The Formula is Gross Rate (%) = Net Rate (%) + Fee (%)

 

Given Rate Type: is a drop-down that sets, Gross rate or Net Rate, one of which is the input value that the user as entered manually, the other which is calculated automatically by T-REX.

Fee Unit:

A Fee Unit expresses a Fee value. The user will chose a Fee unit from a drop-down out of 3 options: %, $ Amount, or % Allocated, where the % is the percent is out of the Outstanding Balance. The $ Amount is a fixed fee amount for each payment. % Allocated is a Allocated Level fee.

  

Allocated Level Fee:

When the Principal Payment Method is set to Allocated Level pay or Reallocated Scheduled Payments, it is possible to set the fee unit to be other than % or $ Amount. The Fee can also be paid as an Allocated Level Pay like loan payments. The Fee also may still be % of the Outstanding Balance or $ fixed amount, while the payments themselves are Allocated Level Pay.

Example 1 (Allocated Level Pay with Fee as %)

A $1,000,000 loan which is Allocated Level Pay at a monthly frequency, has the following settings:

The Fee unit is %.

The Cash Flow Table is:

While Interest is being Allocated Level through the 12 months within the year, all payments are even. The fee is different for each payment and  calculated as a percent of Collat Balance. 

 

Example 2 (Allocated Level Pay with Fee as % Allocated)

The same loan from Example 1, with a changed fee unit  to % Allocated.

The Cash Flow Table result:

The Interest payment is being leveled allocated as before, but now the fee is also being leveled allocated through the 12 months payments. For each of the first 12 months, the fee is $416.