Refinancing a Loan
Overview of IL413
Loan refinancing is the transfer of one loan’s principal balance and interest due to another loan within DDI-Connect. Refinancing can also be used to consolidate multiple loans into one. This application does not allow you to create a new loan; use Loan Maintenance to do this step in the procedure. Once you have created the new loan, you can refinance existing loans:
- From the DDI Connect main menu, double-click Financial Services
- Double-click Loans
- Double-click Transactions
- Double-click 413 Loan Refinance. The Loan Refinance screen will open:
In the ***FROM*** area of the screen, type in the OLD loan number. Click Find on the toolbar or at the bottom of the screen, or press Enter. The old loan information will appear:
In the ***TO*** area of the screen, type in the NEW loan number that you just created. Click Find on the toolbar or at the bottom of the screen, or press Enter. The old loan information will appear:
Note that additional fields have now become enabled on the right side of your screen. They are:
| Field | Description |
|---|---|
| Interest method | Click the drop down arrow to indicate how you want the loan's accrued interest handled. Your options are to transfer the interest or bill the borrower for any accrued interest on the loan |
| Transfer amount | The transfer amount will automatically default to the balance due on the loan. However, you can modify this amount if needed |
| Reserve method | Click the drop down arrow to indicate how you want the loan reserve handled. Your options are to refund the reserve to the borrower or transfer to the new loan |
In addition, if the loan you are refinancing has any rebates, the Rebate method field will activate. Click the drop down arrow to select how you wish to have the rebate handled. Your options are to transfer the rebate or leave as is.
Review the information on the screen. If everything appears correct, click the Save button. You will see this message:
Click OK to return to the Loan Refinance screen.
