Create an interest rate change

LoanPro's Interest Rate Change tool allows users to change a loan's interest rate at any point in the loan's life. Note the following when using this request:

The InterestRateChanges object holds interest rate change history, and it's nested within the Loans entity.

There are two types of interest rate changes: fixed and variable. Here's a breakdown on how they differ:

Fixed rate changes are a one-time rate change based on a rate you enter yourself.

Variable rate changes use interest rate indexes to determine a rate, and they can be used with a combination of LoanPro tools to automatically update a loan's interest on a schedule.

You can log an interest rate change at any point in the loan's life—even before it has been activated. The change will take effect on the chosen applyDate.

A scheduled interest rate change will override a schedule roll. For example, if an interest rate change has occurred on a loan and a schedule line later applies, the calculator will use the interest rate specified by the Interest Rate Change tool.

Using this tool will affect the loan's APR, and the tool does not have a rate limit. Make sure to comply with your local lending laws when logging rate adjustments.

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A note regarding interest rate changes:

When using either type of interest rate change, please note that payments and their amounts are not adjusted. Changing the loan's interest rate will only adjust how interest accrues; it will not adjust how much a borrower owes on each scheduled payment.

For an example of how the Interest Rate Change tool works in the UI, take a look at our Interest Rate Changes article.

Database

For information regarding interest rate change database tables, see the following articles:

Database – Loan Interest Rate Change (loan_interest_rate_change_entity)

{
    "InterestRateChanges": {
        "results": [
            {
                "type": "loan.interest.rate.change.type.fixed",
                "rate": "6",
                "description": "Promo Rate Expiration",
                "applyDate": "2024-01-01"
            }
        ]
    }
}

{
    "InterestRateChanges": {
        "results": [
            {
                "applyDate": "2023-09-13",
                "lookupDate": "2023-08-13",
                "type": "loan.interest.rate.change.type.variable",
                "rate": "",
                "variableRateIndexId": 17,
                "margin": -1,
                "min": 6.125,
                "max": 8.0,
                "description": "Variable Rate Change"
            }
        ]
    }
}