Rate Adjustment Terms
Clicking Rate Adjustments in the Loan dialog box opens the Rate Adjustment Terms dialog box displayed in Figure 55.26.
Figure 55.26: Rate Adjustment Terms Dialog Box
The following items are displayed:
The Rate Adjustment Terms area
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Life Cap holds the maximum deviation from the Initial Rate allowed over the life of the loan.
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Periodic Cap holds the maximum adjustment allowed per adjustment.
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Adjustment Frequency holds how often (in months) the lender can adjust the interest rate.
The Rate Adjustment Assumption determines the scenario the adjustments will take.
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Worst Case uses information from the Rate Adjustment Terms area to forecast a worst-case scenario.
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Best Case uses information from the Rate Adjustment Terms area to forecast a best-case scenario.
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Fixed Case specifies a fixed-rate loan.
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Estimated Case uses information from the Rate Adjustment Terms and Estimated Rate area to forecast a best-case scenario.
Estimated Rates holds a list of date-rate pairs, where each date is a SAS date and the rate is a nominal percentage between 0 and 120. The Estimated Case assumption uses these rates for its calculations. Right-clicking within the Estimated Rates area reveals many helpful tools for managing date-rate pairs.
OK returns you to the Loan dialog box, taking rate adjustment information into account.
Cancel returns you to the Loan dialog box, discarding any rate adjustment information provided since opening the dialog box.