Mortgage Requirement

Can anyone help me in setting up this Mortgage Requirement:


We would like to define a periodic deduction for general insurance payable to General Accident PLC (credit account their USD account with us) for our MG products:

a) MG.PARAMETER
b) MG.TYPE.TEXT

Your customer also takes an annuity MG loan (category 25011) with the following characteristics:

ï?§ Loan amount USD 50,000.00 drawn down today with a maturity in 5 years
ï?§ Floating interest rate of 1% above base rate for the first band of USD 20,000.00 then 2% above base rate for the rest
ï?§ Repayment schedule as follows:
o Monthly interest payments for the first 6 months
o Then monthly principal and interest payments for the remainder of the loan with equal monthly repayments i.e. annuity basis
o Monthly insurance premium deduction of USD 10.00

c) MG.MORTGAGE for loan above

I have already setup the MG.PARAMETER and MG.TYPE.TEXT

My problem is setting up the Repayment schedule in the MORTGAGE application.

I would appreciate any suggestions. Thank you.

Hi malachi,

The bank's requirement can be achieved only through Linear method and not through Annuity method.

Annuity Method does not allow Banded int

Select CONTRACT TYPE AS LINEAR
CATEGORY CODE - RELATED TO LINEAR LOAN
upto principal 20000
fixed var variable
fixed rate <blank>
int key 1 7% base rate
int variable 1.00
upto principal <blank>
fixed var variable
fixed rate <blank>
int key 1 7% base rate
int variable 2.00
effective int

add pay type A1
add amount 10.00
add pay date date freq
add cr account insurance co ac with the bank

regards
murugan

Ugh! It is something I am afraid of. I cannot go for mortgage. It is like snatching the roof away from one’s head if the loan isn’t repaid. Therefore, I am going to take help of a certified financial planner india to know more creative ways of buying a property.