One cool little trick to compare potential loans

Cindy Fisher | November 27, 2019

Every lending institution knows that this is the time of year to ask borrowers if they would like any additional cash for the holidays, or whether they’d like to roll their loan into a lower-interest loan with cash back options.

The Payment Calculator tool found in CIM GOLD allows you to set up and compare loans for a borrower before making any final decisions. Then if the borrower likes the terms and payment options, you can quickly roll the old loan into the new loan in GOLDTrak PC with just the click of a few buttons.

This is best explained with the following scenario:

Mary is only four months away from paying off her loan, but she’d like some cash for the holidays. She comes into your office asking if you can help.

1. You bring up her account in CIM GOLD and navigate to the Loans > Payment Calculator screen.

2. Depending on what type of loan she would like, you can select the Loan Type as needed. For example, if the customer wants $2,000.00 cash back, you should choose a Loan Type designated for amounts less than $5,000. (Loan Types are specific to institutions. Payment Calculator only runs if specific Loan Types are designated and set up appropriately. Details of these Loan Types are set up by GOLDPoint Systems based on your institution’s specific requirements.)

3. Give your plan a description in the Plan 1 Desc field.

4. Designate the Term of the loan. The Term establishes how many payments are required before the loan is paid off. Let’s say Mary wants to pay off her new loan in 48 months, so we’d select “48” in the Term field.

5. The Amount to Calculate box is where you would designate either the monthly payment amount Mary is willing to pay or the amount of cash going back to Mary. It’s easy to toggle between the two. For this example, we’ll select “Cash To Customer” and enter “2,000.00” in the Payment field.

6. Now access each of the other tabs on the Payment Calculator screen and finish filling in the rest of the options. Important: Make sure that if Mary is planning to roll the old loan into the new loan that you fill in the fields on the Renewals tab.

7. When you are ready to add the loan plan, click <Calculate>. The Payment Calculator will display the details of that loan, and you can show it to the customer or even print out the plan and hand it to them.

(Tip: When the Payment Calculator Results window is displayed, right-click it and select “Print Preview.”)

8. Now click <Add> to save that loan plan to the left list-view table. The following example shows these steps.

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Loans > Payment Calculator Screen

 

Create another loan calculation

Now let’s say you want to compare that potential loan with another potential loan. Maybe with this loan you want to show Mary the differences in payments were she to take out a loan for $3,000.00 instead of just $2,000.00.

1. Stay on the Payment Calculator screen and click <New> to create a new loan plan.

2. Repeat steps 1-4 from above but change the Cash To Customer to “3,000.00.”

3. Click <Calculate> and then <Save> to save that plan as well. It should show underneath the first loan plan in the left list-view table, as shown below:

image 1 (5)-1

 

Compare the loan plans

To compare the two loan plans you just created, press <Ctrl> + <Shift> while you click on both plans in the left list-view table. Click <Results>, and the Payment Calculator Results window will show both loan plans, as shown below.

image 1 (6)-1

image 1 (7)-1

As you can see in our example above, Mary would pay about $60 more per month for 24 months to have $1,000 more in cash.

If Mary agrees to that plan, you can select it in the left list-view table on the Payment Calculator screen, and then click <Apply>. You should have GOLDTrak PC open before clicking <Apply>.

The loan request will start, and the new application process will roll the old loan into the new loan. Finish opening the loan through GOLDTrak PC, which should be a snap, as all pertinent fields will be already entered for you. All that awaits is authorization, signing documents, funding, and boarding the loan.

Tags: payment calculator

Cindy Fisher | November 27, 2019

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