The Loan Worksheet (accessible from the Applications tab in the Planning & Project Management tool menu) is primarily used to calculate final state fees and interests, plus any LMI premium for a selected product or category, after taking down all security details… For example, the monthly payments might be computed as follows: Initial Principal Balance, Interest Paid, Principal Paid, Current Market Rate, Mortgage Principal Balance and Adjustment Factors. Then, the percentage change in the market interest rates is calculated by adding the initial value to the current market rate for each scenario. Finally, the interest rate is set to the figure in the table closest to the current interest rate. For many users, it is easier to enter the rates for all scenarios in one place, since all the calculations are already done for you.
As a rule, most financial spreadsheets also come with additional financial tools. In the case of loan worksheet, these additional tools are usually found within the “additional resources” drop-down menu. For instance, if you would like to look at the loan principal balance, the menu might let you select “Loan Principal Detail.” You can also add other financial variables such as the time period for the calculation, the maximum payment amount for each scenario, and the number of years for which the loan is secured.
On the other hand, the loan worksheet does not require you to have any knowledge of financial spreadsheets in order to use it effectively. Once you have entered in all the required information, you can easily and quickly understand what results will be. Most spreadsheets will automatically close their rows when you save them. If you save the document in the future, you do not have to repeat the process entering information again.
There are various reasons why people choose to use a loan worksheet instead of completing the same task by hand. One reason is that the information entered on worksheets can be immediately updated. When you enter in data on your own, you may find out that the value has already been updated. However, on worksheets, you are able to immediately change the value of any variable. This means that even if you forget to save the document before completing your calculations, you will still get the right values.
Moreover, financial spreadsheets often allow you to run more scenarios for comparison. It is difficult to compare various financial scenarios because of their uniqueness. When you use financial worksheets to evaluate loan scenarios, you have the option to compare duplicate loans. You also have the option to compare loan payment scenarios. All these scenarios allow you to make a quick comparison between your different financial options.
Finally, financial spreadsheets are much easier to use than hand written notes. When you are using a loan worksheet to create loan estimates, you are able to quickly enter in information and view different results. Financial spreadsheets are easy to use because they are already formatted to make it convenient for you to enter your own information. Also, financial spreadsheets are easier to compare and to update.