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:

• 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"
            }
        ]
    }
}