Jan 012018
 
Comprehensive Mortgage calculation program.
File PCLOAN5.ZIP from The Programmer’s Corner in
Category Financial and Statistics
Comprehensive Mortgage calculation program.
File Name File Size Zip Size Zip Type
MANUAL.DOC 173581 39476 deflated
PC5HELP.DBF 4053 944 deflated
PC5HELP.DBT 62096 9937 deflated
PC5HELP.NTX 6144 1234 deflated
PC5PARM.B 1353 367 deflated
PC5PARM.DBF 1353 365 deflated
PCLOAN5.EXE 280407 122047 deflated
README 2617 1180 deflated
SYSOP.TXT 1583 716 deflated
WHO_USES 2237 996 deflated

Download File PCLOAN5.ZIP Here

Contents of the README file




PCLOAN5
PROFESSIONAL LOAN AMORTIZATION SYSTEM

Version 5.01 06-10-90

The file PCLOAN5.ZIP contains all the files needed by the PCLOAN5
loan amortization system. These files are stored in a condensed format
and must be removed before the system can be used.


FLOPPY DISK SYSTEMS

As distributed, PCLOAN5 looks for its data in the startup directory.
This works for hard disks and for floppy disks with at least 720K
capacity. It will not work on a 5 1/4 inch 362K floppy disk.

The software completely fills a 5 1/4 inch 362K floppy disk leaving
no room for data files. If your floppy disks hold as much as 720K, you
may place both the programs and the data files on the same disk.

Once the system is up and running, the option menu will allow you to
define any configuration you like. You can place the program in any
directory of any disk and the data in any directory of any disk. See the
manual for details.

The to execute the system from two 362K floppy disks, first copy the
program file, PCLOAN5.EXE, and the parameter file, PC5PARM.DBF to the
program disk. Use the Options Data menu item (see the manual) to tell
the system to create its data files on drive B:. There is an example
setup in the manual. Next copy the help files, PC5HELP.DBF and
PC5HELP.DBT to a second disk. This disk will be the data disk. Also copy
the file PC5PARM.DBF to the data disk AFTER CHANGING THE DATA PATH.

Now place the program disk in drive A:, the data disk in drive B:,
log on to drive A: and type the command PCLOAN5.



PRINTING THE MANUAL

The manual is in the file called MANUAL.DOC. It is completely
formatted for 8 1/2 by 11 inch pages with your printer set to 10
characters per inch. Use the DOS PRINT command , or the DOS COPY command
to print it.

eg:

A>PRINT MANUAL.DOC

When you are asked for the name of the print device, press .

eg:

A>COPY MANUAL.DOC PRN:


LASER PRINTERS

Most laser printers believe an 8 1/2 x 11 inch page has 60 lines. We
know better however and must instruct it that the page has 66 lines.

This can be done by software if you have a program to do it. If you do
not have a printer control program several nice ones are available as
shareware.

Absent a control program, you must consult with the dreaded manual.
HP laser printers can be set from the menu. If you do so, don't forget
to reset it. The menu selections are not effective until the printer is
reset.


Contents of the MANUAL.DOC file




PCLOAN5
PROFESSIONAL LOAN AMORTIZATION SYSTEM

Version 5.01 06-10-90

The file PCLOAN5.ZIP contains all the files needed by the PCLOAN5
loan amortization system. These files are stored in a condensed format
and must be removed before the system can be used.


FLOPPY DISK SYSTEMS

As distributed, PCLOAN5 looks for its data in the startup directory.
This works for hard disks and for floppy disks with at least 720K
capacity. It will not work on a 5 1/4 inch 362K floppy disk.

The software completely fills a 5 1/4 inch 362K floppy disk leaving
no room for data files. If your floppy disks hold as much as 720K, you
may place both the programs and the data files on the same disk.

Once the system is up and running, the option menu will allow you to
define any configuration you like. You can place the program in any
directory of any disk and the data in any directory of any disk. See the
manual for details.

The to execute the system from two 362K floppy disks, first copy the
program file, PCLOAN5.EXE, and the parameter file, PC5PARM.DBF to the
program disk. Use the Options Data menu item (see the manual) to tell
the system to create its data files on drive B:. There is an example
setup in the manual. Next copy the help files, PC5HELP.DBF and
PC5HELP.DBT to a second disk. This disk will be the data disk. Also copy
the file PC5PARM.DBF to the data disk AFTER CHANGING THE DATA PATH.

Now place the program disk in drive A:, the data disk in drive B:,
log on to drive A: and type the command PCLOAN5.



PRINTING THE MANUAL

The manual is in the file called MANUAL.DOC. It is completely
formatted for 8 1/2 by 11 inch pages with your printer set to 10
characters per inch. Use the DOS PRINT command , or the DOS COPY command
to print it.

eg:

A>PRINT MANUAL.DOC

When you are asked for the name of the print device, press .

eg:

A>COPY MANUAL.DOC PRN:


LASER PRINTERS

Most laser printers believe an 8 1/2 x 11 inch page has 60 lines. We
know better however and must instruct it that the page has 66 lines.

This can be done by software if you have a program to do it. If you do
not have a printer control program several nice ones are available as
shareware.

Absent a control program, you must consult with the dreaded manual.
HP laser printers can be set from the menu. If you do so, don't forget
to reset it. The menu selections are not effective until the printer is
reset.

















PCLOAN5
Version 5.01

Bottom Line Software
P. O. Box 1804
Burleson, Texas 76028-1804
817-447-5524

Software and Manual
Copyright 1990
Bottom Line Software



Information in this document is
subject to change without notice.


































TABLE OF CONTENTS

License Agreement and Warranty . . . . . . . . . . . . . . . . . . 1

License exceptions for shareware version: . . . . . . . . . . . . . 2

Installation of shareware version . . . . . . . . . . . . . . . . . 2

Differences between shareware and licensed version . . . . . . . . 3

Additional features of licensed version . . . . . . . . . . . . . . 3

Real loan accounting for multiple loans. . . . . . . . . . . . 4

Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

How does it work . . . . . . . . . . . . . . . . . . . . . . . . . 4

Installation . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Auto Installation . . . . . . . . . . . . . . . . . . . . . . 5
Auto install menu . . . . . . . . . . . . . . . . . . . . . . 5
Subdirectories . . . . . . . . . . . . . . . . . . . . . . . . 6
Manual Installation . . . . . . . . . . . . . . . . . . . . . 6
Required Files . . . . . . . . . . . . . . . . . . . . . . . . 6
Floppy disk systems . . . . . . . . . . . . . . . . . . . . . 7

To run the program . . . . . . . . . . . . . . . . . . . . . . . . 8

Help Function . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Using the Microsoft Mouse . . . . . . . . . . . . . . . . . . . . . 9
Mouse troubles . . . . . . . . . . . . . . . . . . . . . . . . 9
Mouse cursor moves too quickly . . . . . . . . . . . . . . . . 10

Menu Operations . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Selecting Menu Options . . . . . . . . . . . . . . . . . . . . . . 10

Main menu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

File submenu options . . . . . . . . . . . . . . . . . . . . . . . 12
(File)Open . . . . . . . . . . . . . . . . . . . . . . . . . . 13
(File)Save . . . . . . . . . . . . . . . . . . . . . . . . . . 13
(File)Rename . . . . . . . . . . . . . . . . . . . . . . . . . 13
(File)Copy . . . . . . . . . . . . . . . . . . . . . . . . . . 13
(File)Delete . . . . . . . . . . . . . . . . . . . . . . . . . 13

Schedule submenu options . . . . . . . . . . . . . . . . . . . . . 14
(Schedule) Create . . . . . . . . . . . . . . . . . . . . . . 14
(Schedule) Add schedule . . . . . . . . . . . . . . . . . . . 15
(Schedule) Transaction . . . . . . . . . . . . . . . . . . . . 15
(Schedule) Recalculate . . . . . . . . . . . . . . . . . . . . 15
(Schedule) View . . . . . . . . . . . . . . . . . . . . . . . 16
(Schedule) Browse . . . . . . . . . . . . . . . . . . . . . . 16












(Schedule) Edit . . . . . . . . . . . . . . . . . . . . . . . 16
(Schedule) Print . . . . . . . . . . . . . . . . . . . . . . . 17
(Schedule) Sort . . . . . . . . . . . . . . . . . . . . . . . 17

Print submenu options . . . . . . . . . . . . . . . . . . . . . . . 17
(Print) Printer . . . . . . . . . . . . . . . . . . . . . . . 18
(Print) Console . . . . . . . . . . . . . . . . . . . . . . . 18
(Print) Form feed . . . . . . . . . . . . . . . . . . . . . . 18
(Print) Line feed . . . . . . . . . . . . . . . . . . . . . . 18
(Print) Summary . . . . . . . . . . . . . . . . . . . . . . . 19
(Print) Incomplete . . . . . . . . . . . . . . . . . . . . . . 19

Interest submenu options . . . . . . . . . . . . . . . . . . . . . 19
(Interest) Rate . . . . . . . . . . . . . . . . . . . . . . . 19
(Interest) Basis . . . . . . . . . . . . . . . . . . . . . . . 20

Transaction Submenu Options . . . . . . . . . . . . . . . . . . . . 20
(Transaction) Go to . . . . . . . . . . . . . . . . . . . . . 20
(Transaction) Add . . . . . . . . . . . . . . . . . . . . . . 21
(Transaction) Edit . . . . . . . . . . . . . . . . . . . . . . 21
(Transaction) Seek date . . . . . . . . . . . . . . . . . . . 21
(Transaction) Delete . . . . . . . . . . . . . . . . . . . . . 21
(Transaction) Change . . . . . . . . . . . . . . . . . . . . . 22
(Transaction) Type . . . . . . . . . . . . . . . . . . . . . . 22

Calculator Submenu Functions . . . . . . . . . . . . . . . . . . . 22
(Calculator) Mortgages . . . . . . . . . . . . . . . . . . . . 23
(Calculator) Dates . . . . . . . . . . . . . . . . . . . . . . 23

The Options Submenu . . . . . . . . . . . . . . . . . . . . . . . 23
(Options) Fiscal year . . . . . . . . . . . . . . . . . . . . 24
(Options) Negative Am . . . . . . . . . . . . . . . . . . . . 24
(Options) Defaults . . . . . . . . . . . . . . . . . . . . . 24
(Options) Defaults Company name . . . . . . . . . . . . . . . 24
(Options) Defaults Schedule Header . . . . . . . . . . . . . . 24
(Options) Defaults Schedule style . . . . . . . . . . . . . . 24
(Options) Defaults Printer . . . . . . . . . . . . . . . . . . 25
(Options) Defaults Visual . . . . . . . . . . . . . . . . . . 25
(Options)Defaults Data Path . . . . . . . . . . . . . . . . . 25
Floppy disk systems data path . . . . . . . . . . . . . . . . 26

Quit Submenu . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

The Status Line . . . . . . . . . . . . . . . . . . . . . . . . . . 27

Data Entry Screens . . . . . . . . . . . . . . . . . . . . . . . . 27

Data Entry Cursor Control Keys . . . . . . . . . . . . . . . . . . 28

Browse Function . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Browse Cursor Control Keys . . . . . . . . . . . . . . . . . . 31

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32













Create an amortization schedule . . . . . . . . . . . . . . . . . . 32
Mortgage data entry screen: . . . . . . . . . . . . . . . . 32
Date of mortgage . . . . . . . . . . . . . . . . . . . . . . 32
Date of first payment . . . . . . . . . . . . . . . . . . . 32
Mortgage amount . . . . . . . . . . . . . . . . . . . . . . 33
Number of payments . . . . . . . . . . . . . . . . . . . . . 33
Payments per year . . . . . . . . . . . . . . . . . . . . . 33
Initial rate . . . . . . . . . . . . . . . . . . . . . . . . 34
Interest basis . . . . . . . . . . . . . . . . . . . . . . . 34
Payment type . . . . . . . . . . . . . . . . . . . . . . . . 35
Payment amount . . . . . . . . . . . . . . . . . . . . . . . 35
Number payments interst only . . . . . . . . . . . . . . . . 36
Balloon at payment number . . . . . . . . . . . . . . . . . 37

Prepayment Variations . . . . . . . . . . . . . . . . . . . . . . . 37
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Regular Periodic Prepayments . . . . . . . . . . . . . . . . 38
Irregular and One Time Payments . . . . . . . . . . . . . . 38

Entering a secondary schedule . . . . . . . . . . . . . . . . . . . 39
Date of first payment . . . . . . . . . . . . . . . . . . . . 39
Number of payments . . . . . . . . . . . . . . . . . . . . . . 39
Number of payments per year . . . . . . . . . . . . . . . . . 39
Payment amount . . . . . . . . . . . . . . . . . . . . . . . . 40
Interest Basis and Payment type . . . . . . . . . . . . . . . 40

Interest Computation Basis . . . . . . . . . . . . . . . . . . . . 40

Recalculating A Schedule . . . . . . . . . . . . . . . . . . . . . 41

Printing Reports . . . . . . . . . . . . . . . . . . . . . . . . . 42
Printing an Amortization Schedule . . . . . . . . . . . . . . 42
Printing a summary schedule . . . . . . . . . . . . . . . . . 42
Stopping an unwanted schedule. . . . . . . . . . . . . . . . . 43

Customizing the Reports . . . . . . . . . . . . . . . . . . . . . . 43
Changing the Company Name . . . . . . . . . . . . . . . . . . 43
Changing the Schedule Header . . . . . . . . . . . . . . . . . 43
Change the Printer Setup . . . . . . . . . . . . . . . . . . . 44
Change the Printer Control Codes. . . . . . . . . . . . . . . 44
Printer Graphics Characters. . . . . . . . . . . . . . . . . . 44
Visual Update . . . . . . . . . . . . . . . . . . . . . . . . 45

Financial Calculator . . . . . . . . . . . . . . . . . . . . . . . 45
Financial calculatons . . . . . . . . . . . . . . . . . . . . 45
Date calculations . . . . . . . . . . . . . . . . . . . . . . 46
APR calculations . . . . . . . . . . . . . . . . . . . . . . . 47
APR calculator data entry . . . . . . . . . . . . . . . . . 47
gross amount financed . . . . . . . . . . . . . . . . . . 47
origination fee . . . . . . . . . . . . . . . . . . . . . 48
payment streams . . . . . . . . . . . . . . . . . . . . . 48
unit period? . . . . . . . . . . . . . . . . . . . . . . 48
basis . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Payment amount . . . . . . . . . . . . . . . . . . . . . 49












Number of payments . . . . . . . . . . . . . . . . . . . 49
Periods to first payment . . . . . . . . . . . . . . . . 49
Odd days to first payment . . . . . . . . . . . . . . . . 50
Multiple payment streams . . . . . . . . . . . . . . . . 50

Tutorial. How to Use the Program . . . . . . . . . . . . . . . . . 50
Make a new schedule . . . . . . . . . . . . . . . . . . . . . 51
Selecting interest basis . . . . . . . . . . . . . . . . . . . 52
Selecting payment type . . . . . . . . . . . . . . . . . . . . 52
Computing the payment amount . . . . . . . . . . . . . . . . . 53
Viewing or Browsing the schedule on screen . . . . . . . . . . 54
Finding a payment by payment number . . . . . . . . . . . . . 55
Finding a payment by payment date . . . . . . . . . . . . . . 56
Printing the entire schedule . . . . . . . . . . . . . . . . . 56
Printing a range of payments . . . . . . . . . . . . . . . . . 56
Printing an annual summary . . . . . . . . . . . . . . . . . . 57
Adding a secondary schedule . . . . . . . . . . . . . . . . . 57

Schedule File Specifications . . . . . . . . . . . . . . . . . . . 58
Detailed Field Descriptions . . . . . . . . . . . . . . . . . 59

Data file header . . . . . . . . . . . . . . . . . . . . . . . 63
loan setup information . . . . . . . . . . . . . . . . . . . . 63

Frequent Questions . . . . . . . . . . . . . . . . . . . . . . . . 64
Can the amortization schedules be made to agree exactly with the
bank's interest and principal figures? . . . . . . . . . . . 64
How does PCLOAN5 handle rounding? . . . . . . . . . . . . . . 64
How can I get the total interest paid over the life of the loan
without actually printing the entire schedule? . . . . . . 65
How does the bank compute interest? . . . . . . . . . . . . . 66
How do I compute the APR for a loan with points? . . . . . . . 67
The screen display is so dim, I can't read it. . . . . . . . . 67

INDEX . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68
































License Agreement and Warranty

This is a legal agreement between you, the end user and Bottom Line
Software, Inc.(BLS). By opening this sealed package or by using this
Software, you are agreeing be bound by the terms of this license
agreement..

Grant of license: Bottom Line Software, Inc. grants you, (the person
or entity who purchased this license) a non exclusive, non
transferable license to use this software on a single terminal,
connected to a single CPU. You may not network the software or
otherwise use it on more than one computer at the same time.

If any provision of this license shall be held to be unenforceable,
such holding shall not affect the enforceability of any other
provision. Your licensed right to use this software terminates upon
your violation of any of the terms of this agreement.

You may terminate this license agreement without notice by
destroying the software and any printed materials provided with it.

Proprietary rights: You agree to take all necessary steps to ensure
that the provisions of this license agreement are not violated by
yourself or any other person under your control or in your service.
The software and manual contain important trade secrets and
intellectual property of BLS. All copyright, patent, trade secret,
trademark, and other intellectual proprietary rights to the licensed
software are and shall remain the valuable property of BLS.

Copyright: This software is owned by BLS and is protected by United
States Copyright laws and international treaty provisions. You must
treat the software as any other copyrighted material with these
exceptions. You may make one copy of this software for on site backup
purposes and one more copy for off site backup. You may copy the
software to a hard disk. You may not copy the manual or other printed
materials accompanying the software.

Other restrictions: You may not rent, lease, or sell the Software. You
may not reverse engineer, decompile, or disassemble the Software.

Dual Media Software: If the Software includes both 3 1/2 and 5 1/4
inch disks, you may use only one or the other as appropriate for your
computer. You may not use the other disks on another computer or
rent, loan, lease, or otherwise transfer them to another user.

Limited Warranty: BLS warrants that the software sill perform
substantially in accordance with the accompanying written materials
for a period of 90 days from the date of receipt as determined by the
invoice date. The media is warranted to be free of defects and
readable for the same period. Implied warranties on the software of
media are also limited to the same period.


PCLOAN5 Bottom Line Software 1












Customer Remedies: BLS's entire liability and your exclusive remedy
shall be, at BLS's option either (a) the return of the price paid or
(b) the replacement of the software or media that does not meet the
limited warranty and which is returned to BLS with a copy of your
invoice.

No other warranties: BLS disclaims any other warranties, either
expressed or implied including but not limited to implied warranties
of merchantability and fitness for a particular purpose.

No liability for consequential damages: In no event shall BLS or its
dealers or suppliers be liable for any damages whatsoever (including,
without limitation, damages for loss of business profits, business
interruption, loss of business information, or other pecuniary loss)
arising out of the use of or inability to use this product, even if
BLS has been advised of the possibility of such damages.

This limited warranty gives you specific legal rights. Since some
states do not allow certain exclusions or limitations of liability,
you may have other rights that vary from state to state.

License exceptions for shareware version:

The shareware version of this software may be posted in an archived
format on any public or private BBS provided the entire system,
including the manual and help screens are included in the archive.
Further providing that no credits or copyright notices are deleted or
modified.

The shareware version of this software may be distributed on disk
by any users group, computer club, or other organization, commercial
shareware distributor, retailer, or wholesaler, provided that only
copies of Bottom Line Software shareware disks are distributed. The
distributor may include a banner or other advertising message on the
disk only if it does not interfere with the automatic installation
features.


Installation of shareware version

If the Shareware version of this software is obtained on an
approved Bottom Line Software disk, or a copy from an authorized users
group, club, or commercial distributor, installation is accomplished
simply by software provided on the disk. Refer to the auto
installation section of this manual.

If the Shareware version of this software is obtained from a
Bulletin Board, or information service like Compuserve or Genie, the
auto install software will not be included and it will be necessary to
refer to the manual installation of this manual.



PCLOAN5 Bottom Line Software 2












Differences between shareware and licensed version

The licensed version of this program omits all the extra screens at
the beginning of the program. The first screen to appear is the menu
screen.

The licensed version has no extra messages either on screen or on
the printed reports.

The licensed version comes with an additional reporting program
that prints several different schedule styles, including amortization
of points and one schedule that allows the comparison of annual
summary figures and compares the total cost of up to five different
mortgages on one single page of 8 1/2 x 11 inch paper.

Additional features of licensed version

The licensed version of PCLOAN5 will always be the very latest
version available. Since features are being added constantly, the
licensed version will have features this shareware version lacks. New
features are added in most cases in response to user's requests. This
practice keeps PCLOAN5 in touch with what is happening today.

The Registered version will include a reports module that offers
several additional report styles. This module is not distributed with
the shareware version because of size constraints.

Scheduled features to be added to the system include:

FASBY 91 amortization of loan origination fees.

Straight line amortization of loan origination fees.

Discounted loan schedule allocating discount to income.

Posting of actual date payment is paid.

Schedule with scheduled date vs actual date paid.

Posting and accumulation of late charges paid.

Calculation of late charges due

Escrow balance with transactions for deposits and disbursements.

Access system allowing index to multiple schedules with name and
address. You will be able to find a schedule by the actual borrowers
name and address, no more 11 character abbreviations (file names).

William and Mary Smith
1234 South Elm Street
Dallas, Texas.

PCLOAN5 Bottom Line Software 3












Real loan accounting for multiple loans.

For those who own, or in the business of buying and selling loans,
notes, or mortgages, Bottom Line Software offers the LOAN MASTER loan
accounting system. This system is a true loan accounting system. It
works like the bank's or the S&L's computer. It will do all the
accounting, interest computation, and checking for past due status for
as many loans as your disk will hold.


Introduction.

PCLOAN5 is a program to help you do loan calculations and loan
amortization schedules.

The original PCLOAN was designed by and for bankers with the help
of CPA's and real estate investors. Over the years it has been
completely redesigned by its many users.

PCLOAN5 is a full featured, professional, amortization program. It
will do any calculation needed for a business or personal loan
amortized in multiple payments.


How does it work

PCLOAN5 is a disk based amortization system. Other amortization
programs simply print a report and the data is promptly forgotten.
Only the paper report remains. PCLOAN5 remembers every transaction of
every schedule for as long as you like. It stores every transaction in
a disk file. You can recall and exactly reproduce a schedule you
printed years ago. You can also modify and reprint a schedule when
loan terms are modified or renegotiated.


Installation

PCLOAN5 comes with an auto install feature on the distribution
disk. However, if you have your own ideas and know how to execute
them, you can install it manually.













PCLOAN5 Bottom Line Software 4













Auto Installation

Place the distribution disk in drive A:.

Log on to drive a: by typing the command

A:

then type the command

menu


After a few seconds, you will see this menu on your screen:





1) Install program on drive B:

2) Install program on drive C:

3) Run the Amortization program.




Type menu selection, then





Auto install menu.


Select the option of your choice.

The hard disk option assumes the disk is C: and installs the
program to the default directory. If you want PCLOAN5 in a specific
subdirectory, you must first log on to that subdirectory by using the
DOS command CD.

The floppy disk option installs the program to the default
directory on drive B:. If you want PCLOAN5 in a specific
subdirectory, you must first log on to that subdirectory by using the
DOS command CD.




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PCLOAN5 is not copy protected. If you do not wish to use the
install programs supplied, you may simply copy the files PCLOAN5.EXE
and PCL5PARM.DBF wherever you like.


Subdirectories

The installation software installs the system in the current
directory. If you want the system installed in a special
subdirectory, you must first create that subdirectory. Use the DOS
command MD to create the directory. Make it the current directory by
using the dos commands CD. See your DOS manual for details of how to
use these commands.


Manual Installation


Required Files:

The Amortization system must have these files to operate:

PCLOAN5.EXE

PC5PARM.DBF


The help system is optional and consists of these files:

PC5HELP.DBF

PC5HELP.NTX (This file is created by the system.)

PC5HELP.DBT


To install the software manually, use the DOS copy command to copy
these files to your working floppy disk or to your hard disk.


To copy the program from any disk to any other working disk, you
must first turn on the computer and boot it up with your normal DOS
diskette. When this is accomplished and your screen is displaying the
normal dos prompt A>, perform these steps.

Determine the drive letters for the source and the destination
drives you intend to use. In the following instructions, the source
drive is S and the destination drive is D. You must replace S and D
with the Drive letters for the drives you will be using in your
system.



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To copy from drive A to drive B, replace the S in the instructions
with A and replace the D in the instructions with B.

1)Place you working diskette in drive D:

2)Place the PCLOAN5 diskette in drive S:

3)Be sure the doors are closed properly on both drives.

4)Type the following command lines:

copy S:pcloan5.exe D:


when this copy is complete,

copy S:PC5PARM.DBF D:


5)Press the key to end each copy command.
On some keyboards this key is marked or with a broken
arrow that goes down and left.

6)When each copy is complete, the screen will display a message that
says

1 file(s) copied.


Floppy disk systems

If your system has only two 362k floppy disks, this section is
IMPORTANT. 362k floppy disks disk will not hold enough data to allow
comparing and sorting 360 payment (30 year) mortgages.

To compare mortgage variations requires a great deal of storage
space. To compare a base mortgage with one variation requires 390k
disk space. This means that 30 year mortgages cannot be compared on
systems using only 5.25" 362k floppy disks. Systems with floppy disks
of 720k, 1.2 meg, or 1.44 meg should have no difficulties.

Systems with two floppy disk drives may place the program on one
floppy and the data files on another. To do this select the menu
option to update the parameter file.
From the parameter file menu, select the option to change the path to
the data files.

This screen allows you to set a default disk drive and a path to
the data files. Set the default disk drive to "B" (without the
quotes). The path should be blank. If the path is not blank, use the
backspace or the delete key to make it blank.



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The file PC5PARM.DBF must be on the same disk as the program file,
PCLOAN5.EXE. The help files must be on the data disk.


If this data arrangement is used, the program will look at the
parameter file in the start up directory. This parameter file tells
the program to look for data files on drive B:.


To run the program


With a copy of the program on your working disk and the working
disk in drive A, type the following command,

A>pcloan5

After a few seconds wait you will see the BOTTOM LINE SOFTWARE sign
on banner. At the bottom of the screen you will see a message that
says . Press the key and you will see the
main menu.


If you have installed the program on a hard disk, the command line
will look like this:

C>pcloan5


Help Function

Loan Master has a built in help function. Help screens are
available to instruct the operator on various functions and
operations. On screen help is not always available. When it is, it
is accessed by pressing the function key marked F1.

Help screens appear as windows. Sometimes, the amount of text
required will not fit in the space available. In these cases help
screens can be scrolled to display more text by pressing the down
arrow or the PgDn keys.

To exit a help screen, press the Esc key. Sometimes you may need
to press it twice.










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Using the Microsoft Mouse

To use the Microsoft mouse, the microsoft mouse driver must be
loaded along with the menu program MSMENU.COM. This program file can
be found on the software disk that came with your mouse. Copy the
MSMENU.COM program to your hard disk or to your program floppy and run
it before running PCLOAN5.

You will find the mouse works much as you would expect. It works by
allowing the software MSMENU.COM to translate movement into keystrokes
that are then interpreted by PCLOAN5.


Key stroke Mouse equivalent

UpArrow Move mouse up (forward)

DownArrow Move mouse down (backward)

RightArrow Move mouse right

LeftArrow Move mouse left

Return Right button

F1 (help) Left button

Escape Both Buttons

When the main menu is displayed, select an option by moving the
mouse left or right. The highlight will move from one option to the
next. When you have selected the option of your choice, click the
right button. The menu will open. Move the mouse down to select a
submenu option. When the desired option is highlighted, click the
right key to select it.

Clicking the left button opens a help screen and clicking both
buttons closes the help screen.

Mouse troubles

When you run the MSMENU.COM program, you should receive a message
that says.

Standard (MSMENU) Microsoft Mouse menu installed.

If you do not receive this message, you will receive an error
message that states,

Microsoft Mouse driver not found.


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If you receive the error message, you must load the Microsoft Mouse
driver. It too is located on your Mouse software disk. The mouse
driver is called simply MOUSE.COM. To load the mouse driver, copy it
to your hard disk or to your program floppy disk and type its name.
MOUSE. You will receive a message that says,

Microsoft (R) Mouse Driver Version 6.24
Copyright (C) Microsoft Corporation 1983-1988.
Mouse driver installed.

When you see this message it is time to run the MMENU program
again. This time you will see the message,

Standard (MSMENU) Microsoft Mouse menu installed.

The mouse should now operate properly.

Mouse cursor moves too quickly

If the mouse works too quickly for you to control it easily, reach
for the mouse software disk again. This time run the program called
CPANEL.COM. This program appears to do nothing but when it has been
run, you may access it at any time by pressing the Control and Alt
keys at the same time, and, while holding them down, press either
mouse button. The mouse control panel will pop up on your screen and
allow you to set the speed.

When the control pannel first appears, the speed will be set at 50
(on a scale of 0 - 100). Use the mouse to move the indicator to the
left, lower number, to slow the response. Do not go below 25 on your
first trial.


Menu Operations

Loan Master is completely menu operated. You never have to
remember any commands.

A menu is a list of tasks, or functions the program can perform.
Entering a new loan, is a menu function. Printing a trial balance is
a menu function. Since one menu cannot display all the possible
functions the system can perform, related tasks are listed together on
menus.


Selecting Menu Options

There are two ways to select a menu option. Press the letter key
corresponding to the first letter of the option. Eg, press "Q" to
select Quit. This method only works for options displayed on the
currently active menu. If the File submenu is displayed and "Q" is


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pressed, nothing will happen because "Q" is an option on the main
menu, not on the File submenu.

If you are a new user and not yet confident in your knowledge of
the menu options and the functions they perform, you may use the
cursor keys, or to select a menu option.

Cursor key selection is done by highlighting a menu selection and
pressing the return key.

Highlighting means that one selection will be displayed in a manner
that is noticeably different from the rest of the options.
Highlighting usually results in the selected option being displayed in
reversed colors. Some computer video displays may handle this in a
different manner.

To select an option, press either the or the keys. If you press
the up key, the highlight bar will jump to the next higher option on
the screen (Lower number, higher physical position). The down key has
the opposite effect.

The highlight bar will "roll around" from top to bottom or from
bottom to top. If you press Up when the bar is on the top selection,
it will "roll around" to the bottom selection and vice versa.

It is always possible to select any option with either the up arrow
or the down arrow key.


Main menu

The main menu is a bar type menu across the top of the screen, it
looks like this:


No file
................................................................
File Schedule Print Interest Transaction Calculator Options Quit
................................................................




When this menu is displayed, the word File will be highlighted. The
letters and the background will be the reverse of the rest of the
menu.







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Pressing the "f" key or pressing the return key will select the
File submenu. The File submenu looks like this:


No file
.........................................................
. File Schedule Print Interest Transaction Calculator
.......... .............................................
.. Open .
.. Save .
.. Rename .
.. Copy .
.. Delete .
. ..........


When the file submenu is displayed, both the word file and the word
open will be highlighted. If you press the "O" key or the return key,
you will select the (File)"Open" function.

Pressing the "S" key of the down arrow key will select the
(File)"Save" function.

There is a difference between the "S" key and the down arrow key.
The "S" key actually executes the Save command, the down arrow key
just selects it and highlights it. After it has been selected and
highlighted by the down (or up) arrow key, it may be executed by
pressing the return key.

When the File submenu is open, the right arrow key will close the
File submenu and open the Schedule submenu. Similarly, the left arrow
key will close the File submenu and open the Quit submenu. The left
and right arrow keys wrap around. If the far right selection is
active, a right arrow key press will cause the selection to wrap
around and select the far left option.

Alternatively, you may press the Esc key to close the open submenu.
Then select the desired submenu by pressing the letter key
corresponding to the first letter of its name. Eg. "Q" selects "Quit"


File submenu options

The file submenu presents several options for managing files. Some
of them are schedule oriented but others work with any file on the
disk.






PCLOAN5 Bottom Line Software 12













(File)Open

The File Open command selects a schedule file from the disk and
opens it for viewing, printing, modifying, additions, or deletions. A
schedule file must be Opened before its data can be accessed. Only one
schedule can be open at a time.


(File)Save

The File Save command is the opposite of the File Open command.
This command causes the program to cut the ties between itself and the
currently Opened schedule which will no longer be available for
access. Of course it can be Opened again.

If you forget to save, (close) a file, the program will save it for
you when you Open a new file or exit the program.


(File)Rename

The File Rename command allows you to rename any file in your
current disk directory. It will ask for a file name. If it can find
the file named, it will ask for a new name. The file will be renamed
to the new name.

This function is useful if you have several schedule files on disk
and want to keep them but want to reuse one of the names.


(File)Copy

The File Copy command allows you to make a copy of any file on the
disk. It will ask for a file name. If the file is found, it will ask
for a new name. It will create a new file with the new file name and
copy the contents of the old file to the new file. The old file is not
disturbed. You must have enough space on the disk to hold the new
file.

The File Copy command works with any file, not just a schedule
file.


(File)Delete

The File Delete command allows you to delete any file on the disk.
It will ask for a filename. If the file is found, you will be asked to
verify the request. If you verify the request, the file will be
deleted.



PCLOAN5 Bottom Line Software 13












If you delete a file accidentally and want it back, there are
programs available to retrieve it for you. However, these programs can
work reliably only if no additional data has been written to the disk
which contains the erased file. If the file is on a floppy disk,
remove it immediately and place it in a safe place. If the file is on
your fixed disk, turn off the machine immediately and do not turn it
back on until you have a copy of an unerase program ready to run. Run
it from the floppy disk. DO NOT COPY THE UNERASE PROGRAM TO YOUR HARD
DISK. DO NOT INSTALL ANY OF DISK UTILITIES TO YOUR HARD DISK UNTIL
THE ERASED FILE HAS BEEN RECOVERED.


Schedule submenu options

The Schedule submenu offers several selections for managing
amortization schedule files. These functions work only on amortization
schedule files.

To select the Schedule submenu, press the "S" key while the main menu
is displayed and no other submenus are open. If another submenu is
open, use the left or right arrow keys to select a new submenu.
Alternatively, you may press the Esc key to close the open submenu and
then select the desired submenu by pressing the letter key
corresponding to the first letter of its name. Eg. "S" selects
"Schedule"


The Schedule submenu looks like this:


No file
............................................................
. File Schedule Print Interest Transaction Calculator O
...... .............. ......................................
. . Create .
. . Add schedule .
. . Transaction .
. . Recalculate .
. . View .
. . Browse .
. . Edit .
. . Print .
. . Sort .
. ..............


(Schedule) Create

The Schedule create command will ask for a filename. When the name
is received, it will ask for information about the mortgage. A new
file will be created using the filename given and will be filled with
data for each transaction of the mortgage specified.

PCLOAN5 Bottom Line Software 14













If a file exists with the name given, the old file will be replaced
by the new file. You will not be warned. You can use the File Rename
or File Copy menu selections to save a copy of a file if you need to
reuse an existing file name.


(Schedule) Add schedule

The Schedule Add schedule command, allows you to add another
schedule to an existing schedule.

A 30 year mortgage is payable in monthly payments of $1,000.00. The
homeowner however inherited some oil company stock from a rich
relative. The stock pays a quarterly dividend of $1,200.00. The
regular payment is due on the first, the dividend is received on the
15th. What would happen if the dividend were paid on the mortgage on
the date it was received? What would happen if the lender would not
accept the payment on an odd date but would accept it on the next
regular payment date? What if only half the dividend check were
applied to the mortgage?

The addition of an additional schedule requires that the schedule
be recalculated to compute the interest and principal allocations. See
the Schedule recalculate selection.


(Schedule) Transaction

The Schedule Transaction command allows the addition of a single
transaction to the schedule. This transaction may be for any amount of
interest or principal on any date. It can be specified as interest or
principal only or the program can be allowed to allocate it as
interest and principal as needed on the date it is paid,

There is no limit to the number of additional, irregular
transactions that can be added. (Disk capacity, of course.)

The addition of an irregular payment requires that the schedule be
recalculated to compute the interest and principal allocations. See
the Schedule Recalculate selection.


(Schedule) Recalculate

When a schedule is created, all interest and calculations are done.
All interest and principal is allocated to the scheduled payment dates
and the entire schedule is stored in a disk file.

If the schedule is altered in any way, transactions added or
deleted, changes of interest rate or payment amount, all the interest
and principal payments after that date must be reallocated.

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(Schedule) View

The Schedule View function allows viewing the schedule on the
screen immediately rather than waiting on the printer. Any part of the
schedule is available immediately. The viewer can scroll down the
schedule page by page or jump to the middle or the bottom and scroll
back up. The view function allows jumping immediately forward or
backward to any payment.

Another function, the Transaction Seek function allows the schedule
to be preset to a specific date before the view is invoked. Select the
Seek function and ask for 07-07-98, the first transaction viewed will
be the first transaction before that date.

This function is the same as the Print Console function.


(Schedule) Browse

The Schedule Browse function is another way to display the schedule
on the screen in a tabular format. It differs from the Schedule View
function however in that it allows the user to display and optionally
to change any data in the file.

There is more data in the file than appears on a normal
amortization schedule or on the Schedule View screen. The Schedule
Browse function displays all the data in a format similar to a
spreadsheet program and allows it to be viewed or changed.

After changing the data, don't forget to recalculate the schedule.
If you changed a date, you also need to sort the schedule to place the
payments in the correct date order.


(Schedule) Edit

The Schedule Edit function is yet another way of displaying the
data and optionally changing it. This function makes no attempt to
retain the tabular nature of a printed schedule. It displays all the
data in the file for one transaction at a time and allows it to be
viewed or changed.

After changing the data, don't forget to recalculate the schedule.
If you changed a date, you also need to sort the schedule to place the
payments in the correct date order.

This function is the same as the Transaction Edit function.




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(Schedule) Print

The Schedule Print function prints the currently opened schedule to
the printer. If no schedule is currently opened, it will ask for a
file name.


(Schedule) Sort

The Schedule Sort function sorts the transactions in the file into
order by date. This function creates a work file and a new schedule
file. It requires free disk space equal to twice as much as used by
the original file. If the original file is 25k bytes in size, the disk
must have 50k bytes free space to sort it.

Sorting can be impossible on a 362K 5.25 inch data diskette if
there is more than two thirty year mortgage on the disk. Sorting is
never possible on a 362K disk which contains both the program and data
files.


Print submenu options

The Print submenu offers several selections for managing the
printing of amortization schedule files. These functions work only on
amortization schedule files.

To select the Schedule submenu, press the "P" key while the main menu
is displayed and no other submenus are open. If another submenu is
open, use the left or right arrow keys to select a new submenu.
Alternatively, you may press the Esc key to close the open submenu and
then select the desired submenu by pressing the letter key
corresponding to the first letter of its name. Eg. "P" selects "Print"

The Print submenu looks like this:


No file
............................................................
. File Schedule Print Interest Transaction Calculator O
................ ............ ..............................
. . Printer .
. . Console .
. . Form feed .
. . Line feed .
. . Summary .
. . Incomplete .
. ............





PCLOAN5 Bottom Line Software 17












(Print) Printer

The Print Printer selection prints the currently open schedule file
to the printer. If no file is open, the program will ask for a file
name.

The style of the report can be modified by the Options submenu.

This selection works only with amortization schedule files. It
cannot be used to print any other file.


(Print) Console

The Print Console function allows viewing the schedule on the
screen immediately rather than waiting on the printer. Any part of the
schedule is available immediately. The viewer can scroll down the
schedule page by page or jump to the middle or the bottom and scroll
back up. The view function allows jumping immediately forward or
backward to any payment.

Another function, the Transaction Seek function allows the schedule
to be preset to a specific date before the view is invoked. Select the
Seek function and ask for 07-07-98, the first transaction viewed will
be the first transaction before that date.

This function is the same as the Schedule View function.


(Print) Form feed

Send a form feed command to the printer to cause it to eject the
current page. It is the operator's responsibility to see that the
paper is properly aligned in the printer. The program expects the
printer to contain normal 8.5 by 11 inch paper.


(Print) Line feed

Send a line feed command to the printer to cause it to roll up one
line. This command is useful for aligning the paper to the top of a
page.











PCLOAN5 Bottom Line Software 18












(Print) Summary

The Print Summary command is similar to the print printer command
except the report produced contains year end totals only. This report
allows a thirty year mortgage to be summarized on a single page.


(Print) Incomplete

The Print Incomplete command will ask for a beginning and ending
payment number. It will then print a schedule containing both the
payments requested and all payments between them.


Interest submenu options

The Interest submenu allows changing the rate and the method of
calculating the interest due.

To select the Interest submenu, press the "I" key while the main
menu is displayed and no other submenus are open. If another submenu
is open, use the left or right arrow keys to select a new submenu.
Alternatively, you may press the Esc key to close the open submenu and
then select the desired submenu by pressing the letter key
corresponding to the first letter of its name. Eg. "Q" selects "Quit"


The Interest submenu looks like this:


No file
............................................................
. File Schedule Print Interest Transaction Calculator O
....................... ....... ............................
. . Rate .
. . Basis .
. .......


(Interest) Rate

The Interest Rate function allows the user to change the interest
rate. When this function is requested, the user is asked for the new
interest rate. When the new rate is specified, it can be applied to
the current payment only, to the entire life of the loan, or to all
payments from the current payment to the maturity date.

To change the rates of a variable rate loan. Create a schedule with
the original rate. Use the Transaction seek or the Transaction Goto
function to select the payment to which the first rate change applies.
Select the Interest Rate function to change the rate and apply it to


PCLOAN5 Bottom Line Software 19












all transactions to the maturity date. Repeat this process for later
interest rate changes.


(Interest) Basis

The Interest Basis function allows selecting among several common
methods of calculating interest.

The basis refers to the method used to calculate interest. Eg. Do
we calculate rate times balance divided by 12 or do we calculate rate
times balance times 31 days divided by 360 days per year?


Transaction Submenu Options


The Transaction Submenu offers functions related to individual
transactions. These functions apply only to transactions and only to
schedule files.

To select the Transaction submenu, press the "T" key while the main
menu is displayed and no other submenus are open. If another submenu
is open, use the left or right arrow keys to select a new submenu.
Alternatively, you may press the Esc key to close the open submenu and
then select the desired submenu by pressing the letter key
corresponding to the first letter of its name. Eg. "Q" selects "Quit"



No file
............................................................
. File Schedule Print Interest Transaction Calculator O
................................. ........... ..............
. . Go to .
. . Add .
. . Edit .
. . Seek date .
. . Delete .
. . Change .
. . Type .
. ...........


(Transaction) Go to

The Transaction Go to function asks for a payment number. It then
sets the file to that payment number. This allows beginning a view, a
browse, or a print console function at any predetermined payment
number.



PCLOAN5 Bottom Line Software 20












(Transaction) Add

The Transaction Add function allows adding individual irregular
transactions. A transaction may be a payment or a new principal
advance. Transactions may be any amount on any date.

When a schedule is recalculated, transactions scheduled after the
date on which the balance becomes zero are deleted.


(Transaction) Edit

The Transaction Edit function is yet another way of displaying the
data and optionally changing it. This function makes no attempt to
retain the tabular nature of a printed schedule. It displays, on the
screen, all the data in the file for one transaction at a time and
allows it to be viewed or changed.

The PageUp and PageDown keys allow paging through the schedule. Use
the Transaction Goto function to move long distances in the file.

After changing the data, don't forget to recalculate the schedule.
If you changed a date, you also need to sort the schedule to place the
payments in the correct date order.

This function is the same as the Schedule Edit function.


(Transaction) Seek date

The Transaction Seek date function asks for a payment date. It then
sets the file to the first payment before that date. This allows
beginning a view, a browse, or a print console function at any
predetermined date.

This date does not have to be a payment date. It does have to be a
valid date.


(Transaction) Delete

The Transaction Delete function requests either a payment number or
a payment date to be specified. The specified payment will be deleted.

Don't forget to recalculate after deleting payments.








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(Transaction) Change

The Transaction Change function allows changing the payment amount.
The program will ask for a new payment amount. The new payment amount
can be applied to the currently selected transaction only, to all
transactions from the current transaction to the maturity of the loan,
or to the entire loan.

If you have inserted irregular payments in a schedule, be very
careful about using this function. It will change all specified
payments, including irregular payments

Don't forget to recalculate after changing payments.


(Transaction) Type

The transaction type specifies the method of allocating interest
and principal amounts.

The Transaction Type function allows the transaction type to be
changed for the current payment, the entire loan, or for all payments
from the current payment to maturity. See the detailed field
descriptions for definitions of payment types.


Calculator Submenu Functions

The Calculator Submenu allows access to two calculators one is for
calculating days between dates and future or past dates. The other is
a loan function calculator for calculating loan amounts payment
amounts apr's etc.


To select the Transaction submenu, press the "T" key while the main
menu is displayed and no other submenus are open. If another submenu
is open, use the left or right arrow keys to select a new submenu.
Alternatively, you may press the Esc key to close the open submenu and
then select the desired submenu by pressing the letter key
corresponding to the first letter of its name. Eg. "Q" selects "Quit"












PCLOAN5 Bottom Line Software 22














The Calculator Submenu looks like this:


No file
.............................................................
. File Schedule Print Interest Transaction Calculator Op
.............................................. ............ .
. . Mortgages .
. . Dates .
. ............



(Calculator) Mortgages

The mortgage calculator allows many types of mortgage related
calculations to be done quickly and easily. Calculate loan amounts,
payment amounts, number of payments, APR's, etc.


(Calculator) Dates

The date calculator allows calculating past or future dates and
days between dates.


The Options Submenu

The options submenu allows setting certain options that change the
way the program works.

Some of these options apply only to the current schedule, others
are stored on the disk in a file called a parameter file. When the
program is first started it reads this file to determine the options
the use has preset.

To select the Options submenu, press the "O" key while the main
menu is displayed and no other submenus are open. If another submenu
is open, use the left or right arrow keys to select a new submenu.
Alternatively, you may press the Esc key to close the open submenu and
then select the desired submenu by pressing the letter key
corresponding to the first letter of its name. Eg. "Q" selects "Quit"

The File Options submenu looks like this



..................................................................
ule Print Interest Transaction Calculator Options QUIT .
.............................................. ............ ......

PCLOAN5 Bottom Line Software 23












. Fiscal year. .
. SFAS 91 . .
. Negative Am. .
. Defaults . .
............ .


(Options) Fiscal year

The fiscal year end option allows a fiscal year end so the annual
interest totals will be for a fiscal year rather than a calendar year.

(Options) Negative Am

The Negative Amortization option causes interest remaining unpaid
after each payment to be added to the principal.


(Options) Defaults

The Default options are stored on the disk in a parameter file and
are read by the program each time is starts. These default parameters
allow each user to customize the program to individual needs.


(Options) Defaults Company name

The amortization schedule printed by the program provides a space
for the name and address of the borrower and also of the lender or
mortgage company. Financial consultants may use this space for their
name and address.


(Options) Defaults Schedule Header

The amortization schedule has a two line header at the top of the
first page. This space can be used for any message desired or simply
left blank.


(Options) Defaults Schedule style

The program offers two alternate schedule styles. One style prints
the total payment amount, the sum of the interest and principal
amounts for each payment. The alternate style prints a blank space
for the user of the schedule to record manually the actual date the
payment was paid.






PCLOAN5 Bottom Line Software 24












(Options) Defaults Printer

Is the printer Epson compatible and does it print IBM compatible
graphics characters? This setting determines whether the program
prints a smooth continuous double line, ascii character 205, for a
schedule divider, or if the printer can't do it, substitutes a string
of equal characters ("=").


(Options) Defaults Visual

The program displays a great deal of information on the screen when
it is calculating or creating amortization schedules. This process
necessarily results in taking a longer time to complete the process.
If this function it turned off, no visual update, the program will
create schedules and recalculate schedules faster. How much faster
depends on your computer. If you have a slow video card in an old IBM
XT type machine you will notice a difference. If you are using a
floppy disk, you probably will not.


(Options)Defaults Data Path

The data path options allow you to specify where files are to be
stored on the disk system. The system initially looks for and creates
data files in the start up directory. You may specify any directory as
the data directory in which schedule files will be created and stored.
You may also specify other search paths. When searching for a data
file, the program will search these other paths as well. All new files
however will be created in the data directory unless a specific data
path is given with the file name when the file is created.


. Change data path ............................................
. .
. Create files here : c:\pcloan5 .
. .
. Also search here : c:\pcloan5\oldfiles .
. .
...............................................................

The setup above describes a hard disk system in which the PCLOAN5
system is installed in a directory called \pcloan5. The pcloan5
directory has a subdirectory called oldfiles. The complete DOS path
name of the oldfiles directory is C:\PCLOAN5\OLDFILES. (NO PERIOD
AFTER THE PATH NAME)

To run the program the user logs on to the PCLOAN5 directory and
types the name of the program, PCLOAN5. The Parameter file
must be in the start up directory.



PCLOAN5 Bottom Line Software 25












When a new schedule is created, it is created in the directory
C:\PCLOAN5. After the user is satisfied with it, it is copied to the
oldfiles subdirectory for long term storage. This user, being computer
wise, also makes a copy on a floppy disk in case the hard disk
crashes.

When the program is operating, the user can access files in either
the C:\PCLOAN5 directory, or in the C:\PCLOAN5\OLDFILES subdirectory
by simply typing the name of the file.

The file selection menu will display only the files located in the
current working default directory, C:\PCLOAN5.


Floppy disk systems data path

. Change data path ............................................
. .
. Create files here : b:\ .
. .
. Also search here : .
. .
...............................................................


This setup, tells the program that all schedules and help files can
be found in the root directory of disk B: This arrangement is required
for 5.25" 362K floppy disks.


Quit Submenu

The quit submenu allows you to exit the program gracefully. It
should always be used. Exiting the program by turning off the machine
can result in the loss of data.

To select the Quit submenu, press the "Q" key while the main menu
is displayed and no other submenus are open. If another submenu is
open, use the left or right arrow keys to select a new submenu.
Alternatively, you may press the Esc key to close the open submenu and
then select the desired submenu by pressing the letter key
corresponding to the first letter of its name. Eg. "Q" selects "Quit"

The Quit Submenu looks like this:


..............................................................
Print Interest Transaction Calculator Options Quit .
................................................... ........ .
. Cancel . .
. Quit . .
........ .

PCLOAN5 Bottom Line Software 26















This submenu offers only two options. They are self explanatory. Press
"Q" to quit and return to DOS, or press "C" to cancel the Quit Submenu
and return to the Main Menu.

DO NOT QUIT THE PROGRAM BY TURNING OFF THE POWER!


The Status Line

The top line of the screen is the status line. It reports the
status of the current schedule by displaying the name of the current
schedule file, the total number of transactions in the file and the
transaction number of the currently selected transaction.

Usually, the number of transactions will be the same as the number
of payments. Principal advances are also transactions and each
principal advance will add one transaction. Rate changes also count as
transactions if the mortgage has a variable rate feature.

The "Smith" schedule is loaded, you have recently been viewing the
schedule and are currently on transaction 180. The status line looks
like this:


Smith.sch 180 of 360
....................................................

The status line.


Data Entry Screens

When the program needs information from the operator, it displays a
data entry screen. Usually data entry screens occupy the entire
screen. Occasionally, for a simple yes or no answer, the computer will
open a small window on the screen and ask a question. In this
instance the remainder of the screen will stay as is was before.

Data entry screens use prompts ( messages, questions ), to ask for
data. It uses fields to receive data. A field is a specific, isolated,
identified, delineated, area in which data is entered on the screen.

Usually prompts will appear on the screen followed by the data
field to its immediate right. Sometimes, the prompt may be below,
above, left, or right of the data field. It is the responsibility of
the program to make it clear to the user which prompt refers to which
field.



PCLOAN5 Bottom Line Software 27












When the prompts and fields are printed on the screen, the fields
may or may not already contain data. If the program is building a new
record, the data fields will be empty. If the operator has asked to
edit an old record, the fields will contain the old data.

If the program is asking a question to verify a command you have
already given, or implied, the response field will contain a default
answer. A default answer is the answer the computer will use unless
you tell it something different. Often, the program will assume the
number of payments per year is 12 or that the interest basis is 1 and
preenter these amounts for you. These are default answers, you may
allow the program to continue with these values or you may change them
if you want a different value to be used.


Data Entry Cursor Control Keys

During data entry, you will move the cursor around the screen and
enter or change data until you have it like you want it. You will use
the cursor control keys to control the cursor.

The cursor control keys are controlled by the NumLock and the Shift
keys. The NumLock key toggles the numeric key pad back and forth
between the numeric mode and the cursor control mode.

The Shift key does the same thing but on a temporary basis.


For example:

You have the numeric key pad set for cursor control. You move the
cursor to a numeric entry. Next press and hold down the shift key,
this action changes the numeric keypad to numeric entry. You now enter
your number (still holding down the shift key) and then release the
Shift key. The numeric key pad shifts back to cursor control.

If you are a WordStar fan, you will find the Wordstar diamond works
much as you would expect but none of the other WordStar commands are
implemented.














PCLOAN5 Bottom Line Software 28












DATA ENTRY CURSOR CONTROL KEYS
^ Indicates the Control key labeled Ctrl. Thus ^LeftArrow means hold
down the control key while pressing the LeftArrow key.

This key: Does this:
Home Move the cursor to the beginning of the current field.

^Home Move the cursor to the beginning of the first field on
this screen.
End Move the cursor to the last character of the current
field.

^End Move the cursor to the beginning of the last field on
this page.
UpArrow Move the cursor to the previous field.

DownArrow Move the cursor to the next field. Will not end the
current input screen by continuing to the next screen.

RightArrow Move the cursor one character to the right in the current
field.
^RightArrow Move the cursor to the beginning of the next word in the
current field.

LeftArrow Move the cursor to the left one character in the current
field.

^LeftArrow Move the cursor to the beginning of the current word. If
it is already at the beginning, move it to the beginning
of the previous word.

^T Delete from the cursor to the end of the current word.

^Y Delete from the cursor to the end of the current field.

PgUp PgDn Save the data on the current screen and continue to the
next screen.

Esc Continue to the next screen. Do not save the changes, if
any that were made to the current screen.

^U Restore the current field to its original value. This
only works before the cursor is moved out of the field.
Once the cursor has been moved, the only way to restore
the original value is to retype it.

Backspace Delete the character to the left of the cursor.

Delete Delete the character under the cursor

Insert Toggle between insert and typeover modes.


PCLOAN5 Bottom Line Software 29












Browse Function

The browse screen options allow you to browse through the data
files. Each data record is displayed on one line across the screen.
Several records are displayed on each screen with the fields appearing
in columns.

The browse screen looks like this:

TESTME.SCH Tran 1 of 360 Negative Am = N
. .
. . TESTME.SCH ............................................................... .
.. Record 2/361 ..
..Tran Tran Int Payment Int Pmt Days Interest Interest ..
..No. Date Rate Amount Basis Type Int Due Paid ..
. ............................................................................ .
.. 1 .02/01/91. 0.1200. 1,269.88. 1. 1. 30. 1,234.5600. 1,234.56..
.. 2 .03/01/91. 0.1200. 1,269.88. 1. 1. 30. 1,234.2100. 1,234.21..
.. 3 .04/01/91. 0.1200. 1,269.88. 1. 1. 30. 1,233.8500. 1,233.85..
.. 4 .05/01/91. 0.1200. 1,269.88. 1. 1. 30. 1,233.4900. 1,233.49..
.. 5 .06/01/91. 0.1200. 1,269.88. 1. 1. 30. 1,233.1300. 1,233.13..
.. 6 .07/01/91. 0.1200. 1,269.88. 1. 1. 30. 1,232.7600. 1,232.76..
.. 7 .08/01/91. 0.1200. 1,269.88. 1. 1. 30. 1,232.3900. 1,232.39..
.. 8 .09/01/91. 0.1200. 1,269.88. 1. 1. 30. 1,232.0100. 1,232.01..
.. 9 .10/01/91. 0.1200. 1,269.88. 1. 1. 30. 1,231.6300. 1,231.63..
.. 10 .11/01/91. 0.1200. 1,269.88. 1. 1. 30. 1,231.2500. 1,231.25..
.. 11 .12/01/91. 0.1200. 1,269.88. 1. 1. 30. 1,230.8600. 1,230.86..
.. 12 .01/01/92. 0.1200. 1,269.88. 1. 1. 30. 1,230.4700. 1,230.47..
.. 13 .02/01/92. 0.1200. 1,269.88. 1. 1. 30. 1,230.0800. 1,230.08..
.. 14 .03/01/92. 0.1200. 1,269.88. 1. 1. 30. 1,229.6800. 1,229.68..
.. 15 .04/01/92. 0.1200. 1,269.88. 1. 1. 30. 1,229.2800. 1,229.28..
. ............................................................................ .
. .
..............................................................................

The record contains many more fields than can be displayed on the
screen on a single line. To accomplish the goal of one loan on one
line, the line scrolls across the screen. As you use the cursor keys
to move your view to the right, the columns on the left side of the
screen scroll off the screen to the left while the formerly invisible
columns to the right of the screen scroll onto the screen from the
right.

Try it. It is much simpler to do than to describe.









PCLOAN5 Bottom Line Software 30












Browse Cursor Control Keys

This key Does this:

Up Move the cursor up one line, (record, loan,
transaction)

Down Move the cursor down one line, (record, loan,
transaction)

Right Move the cursor one column (field) to the right. If the
cursor is in a field and the editing mode is on, move
the cursor one character to the right.

Left Move the cursor one column (field) to the left. If the
cursor is in a field and the editing mode is on, move
the cursor one character to the left.

Turn on the editing mode (feature) and edit the data in
the currently selected field. If the edit mode is
already on, quit editing the current field, keep the
edited field and continue on the next field to the
right.

^ CtlRight Scroll the entire data base one column to the left.
(Moves the cursor to the right)

^ CtrlLeft Scroll the entire data base one column to the right.
(Moves the cursor to the left)

PgDn Move down one page (further into the data base).

PgUp Move up one page (back towards the top of the
database).

^PgUp Move to the top, first record in the data base.

^PgDn Move to the bottom, last record of the data base.

End Move to the right most column on the screen.

Home Move to the left most column on the screen.

^End Move to the last field to the right of the current
record and scroll the screen so that field is in the
right most column of the screen.

^Home Move to the first field of the current record and place
the first field of each record in the left most column
on the screen.

Esc Exit the browse function and return to the menu.

PCLOAN5 Bottom Line Software 31













Create an amortization schedule

To create a new amortization schedule, select the Schedule Create
command from the menu. You will ba asked for a new filename. Remember
that if a file exists with the same name, it will be replaced by a new
file containing your new amortization schedule.

After specifying the schedule file name, you will see the schedule
data entry screen. This screen is used to enter the information
necessary to specify the original terms of the mortgage.


Mortgage data entry screen:

..............................................
. Date of mortgage : / / .
. Date first payment: / / .
. Mortgage amount : 0.00 .
. Number payments : 0 .
. Payments per year : 0 .
. Initial rate : 0.0000 .
. Interest basis : 0 .
. Payment type : 0 .
. Payment amount : 0.00 .
. No pmts Int only : 0 .
. Balloon at pmt no.: 0 .
. .
..............................................


Enter the data requested. If you make a mistake, you can use the
cursor control keys to back up to previous fields and correct or
change the data. Refer to the table DATA ENTRY CURSOR CONTROL KEYS for
a reference on how the data entry editing keys work.


Date of mortgage

This is the date of the mortgage. The date funds were advanced. The
date interest begins to accrue.


Date of first payment

The date the first payment is due. All future payment dates are
computed from this date. If the date of the mortgage is January 1
first and the date of the first payment is February 5th, all later
payments will be on the 5th of the month.




PCLOAN5 Bottom Line Software 32












Mortgage amount

The original principal amount of the mortgage. This is the gross
amount. The amount used to calculate the payment amount. If a
mortgage is for 100,000.00 with two points, the gross amount is
100,000.00. The net amount financed is $98,000.00. The net amount is
used to calculate the APR. Enter the gross amount, $100,000.00.


Number of payments

The number of payments. This is the number of payments necessary to
amortize the loan. This is not years. If the mortgage is a 30 year
mortgage payable in monthly payments the number of payments is 360.


Payments per year

Number of payments scheduled each year, normally 12 but any regular
periodic period is acceptable. This number can be 1, 2, 3, 4, 6, 12,
13, 24, 26, or 52.
































PCLOAN5 Bottom Line Software 33













The number of payments per year is simply the number of payments
the debtor is expected to pay each year during the life of the loan.
If payments are required monthly, the number of payments per year is
12.


Examples:

payments number of payments
required per year

weekly 52

semi monthly 24

every other week 26
eg. every other Friday

monthly 12

each fourth week 13
eg. every fourth payday.

quarterly 4

thirdly 3

semi-annually 2

annually 1



Initial rate

This is the initial rate of interest quoted in the mortgage
document. If the mortgage is a variable rate mortgage the annual
adjustments will be entered after the schedule is created. Use the
Interest Rate menu option to change the rate.

The program adjusts for your preferred manner of entering interest
rates. Twelve per cent can be entered as either .12, or as 12, or as
12.00.


Interest basis

The interest basis determines the manner in which the interest is
calculated. If you are not sure, press the return key when the field
contains a zero and you will be asked to select the basis from a menu
of valid choices.

PCLOAN5 Bottom Line Software 34














Payment type

The payment type determines the manner in which the payment amount
is allocated to interest and principal. If you are not sure, press the
return key with a zero in the field and you will be presented with a
menu of valid payment types.

There are several commonly used methods of quoting loan payments.
In the first and most common method, the interest is included in the
payment amount quoted. When a payment is made, the interest due is
calculated and deducted from the payment amount. The amount remaining
is applied to the principal balance of the note. This results in all
payments being the same amount. This is the normal manner in which
loan payments are quoted.

In an other method, the loan amount is simply divided by the number
of payments to be made and the result is quoted as the payment amount.
It is understood that all accrued interest is due each payment date in
addition to the principal payment.

When a payment is made on this type note. The interest is
calculated and added to the quoted payment amount to arrive at the
amount of the total payment. This method results in a larger total
payment in the beginning but the payment declines over the life of the
loan as the interest amount declines.

Another method is the same as the first except the payment is
applied at the beginning of the payment period instead of the end of
the period. The first payment id due on the date of the note.

The Canadian Semiannual Compounded mortgage is not really a
different payment type as much as a different way of computing
interest. PCLOAN however implements this loan as a payment type
instead of an interest basis.


Payment amount

The payment amount can be entered or calculated. If you enter an
amount, the program will use the amount you enter. If you press the
return key with a zero amount in the payment field, the program will
compute the correct payment amount.

NOTE:

If you press return on a zero payment amount and let the
program compute the payment amount, and later use the cursor
control keys to return to and change a data field that would
require a change in payment amount, you must change the


PCLOAN5 Bottom Line Software 35












previously calculated payment amount to zero so the program will
know it needs to be calculated.

If you have specified interest only or balloon payments, it will
ignore them and assume the payment you want is the payment necessary
to amortize the loan over the number of payments you specified as the
number of payments to amortize.

If you enter a payment amount, it will use the amount you enter.
(For better or worse!)

If you specify interest only payments and allow the program to
compute the payment amount, the payment amount it uses will not
completely amortize the loan unless you also specify a balloon
payment.

If you want interest only, and complete amortization WITHOUT a
balloon payment, use the loan calculator option from the main menu to
calculate the proper payment for you.

For this to work, you must trick the program by telling it to
amortize the number of payments from the end of the interest only
schedule to the final payment. This is the total number of payments
less the number of interest only payments.


Number payments interst only

Real estate investors often negotiate mortgages with a period of
interest only payments at the beginning of the mortgage term. If used,
these payments will collect only the interest due, regardless of the
specified payment amount.


The number of interest only payments will usually be zero. It may
be any integer number. The amortization routine will not collect any
principal payment until this number of payments has been collected
charging only the interest due.

If the number of interest only payments is greater than the number
of payments to amortize, the program will never charge any principal.
It will collect interest only to the end of the schedule.











PCLOAN5 Bottom Line Software 36












If the payment amount entered is larger than the interest due, the
excess amount will simply be ignored. This type loan is quite common
in real estate financing.

Example:

Interest due 1000.00
Payment amount 1350.00
Amount collected 1000.00
Applied to interest 1000.00
Applied to principal 0.00

If there are no interest only payments, simply enter zero or press
the key.



Balloon at payment number

Many times a loan will have a long term amortization schedule and a
short term maturity. A payment based on a thirty year amortization
schedule but with a five year maturity. At the 60th month the entire
balance is due. This results in a balloon payment, a payment that is
much larger than the previous payments.

If this feature is to be used, enter the payment number at which
the mortgage is to mature, balloon.

The balloon payment is the payment at which the entire amount is
due. This is sometimes called the call date. It is the final maturity
date of the note.

The final maturity date of most notes is simply the date the last
payment matures. If no balloon payment is required, enter 0 or press
.

The note is payable in annual installments based on a ten year
amortization schedule but the entire amount unpaid is due on the fifth
anniversary.
The balloon payment would be payment number 5, the fifth payment.


Prepayment Variations

There are three types of prepayment variations, ont time
prepayments, regular periodic prepayments, and irregular periodic
prepayments. Loan Master can easily handle any of these variations.






PCLOAN5 Bottom Line Software 37












Regular Periodic Prepayments

Assume the base mortgage has monthly payments.

Fixed amount each month:

This variation can be handled two different ways.

1) Create another mortgage schedule and enter the payment amount
as the sum of the regular payment amount plus the prepayment
amount.

2) Use the base mortgage with its original payment amount and add
a secondary schedule for the amount of the prepayment.


Fixed amount quarterly, semiannually, or annually, etc.

This variation can be handled by adding a secondary schedule.
When asked to enter the secondary schedule, enter the date of the
first additional payment, the number of additional payments and the
number of additional payments per year. If the additional payment
is quarterly, the payments per year would be four.


Thirteen regular monthly payments per year with the thirteenth being
made on a regular payment date.

This is tricky because it is not thirteen payments per year! If
you tell the computer 13 payments per year, it will think you mean
one payment each four weeks. What you really mean is 11 payments of
the regular amount followed by a twelfth payment of double the
regular amount.

To set up this variation, you must set up a base mortgage and add
a secondary schedule. The secondary schedule is one annual payment
in the amount of the regular monthly payment.


Irregular and One Time Payments

Irregular payments or one time prepayments are added manually to
the payment schedule. This is done through the Transaction Add. You
must enter the date of the payment, the interest rate and the amount
of the payment, all the other data will be calculated.

If you add payments, be sure to sort the file to place the
payments in order by date and to recalculate the schedule before
printing or comparing it.




PCLOAN5 Bottom Line Software 38












Entering a secondary schedule

A secondary schedule is a regular payment schedule. Secondary
payments can be for any amount at any regular periodic frequency. The
primary schedule will nearly always be monthly. The secondary schedule
may be monthly, quarterly, semi annual or annual.

When you use the Schedule Add command from the main menu, you will
see the secondary schedule data entry screen.


..Enter secondary schedule ......................
. .
. Date of first payment : / / .
. Number payments : 0 .
. No Pmts per year : 0 .
. Payment amount : 0.00 .
. .
.................................................


Date of first payment

This is the date of the first secondary schedule payment. It may be
any valid date after the date of the mortgage and before the maturity
date. All future secondary schedule payment dates will be calculated
from this date. If this date is 08-15-93 and the number of payments
per year is entered as 4, the secondary schedule payments will be 08-
15, 11-15, 02-15, and 05-15 each year thereafter.


Number of payments

How many secondary payments will be made. Will the secondary
schedule extend until final maturity or only for a year or so? If a 30
year mortgage has been paying 10 years, there are 20 years remaining.
If the secondary payments are monthly it would take 240 of them to
reach the maturity date.

If more is paid, the maturity will come sooner. Since you do not
know when the balance will reach zero, do not worry about it. Just
enter the 240 monthly payments or 60 quarterly or 20 annual payments.
When the schedule is calculated, all unnecessary payments will be
deleted.


Number of payments per year

Although we have discussed only monthly, quarterly and annual
prepayments, the prepayment frequency can be any valid frequency, 1,
2, 4, 6, 12, 13, 24, 26, or 52 payment per year.


PCLOAN5 Bottom Line Software 39













Payment amount

Enter the amount of the secondary payment.


Interest Basis and Payment type

Interest basis and payment type are assumed to be the same as the
base mortgage.


Interest Computation Basis

The basis of interest computation refers to the divisor used in the
interest formula. The formula for computing interest is very simple:



Interest = Rate x Principal x Time


This is the base formula we all learned in school. It is so simple
it often is inadequate to describe real world situations like partial
periods.

To make the computations simpler, the money lenders many years ago
decided to divide the year in to twelve months of thirty days each.
Using this system, the year has only 360 days.



The interest for one month becomes:

principal x 1(month)
interest = rate x -------------------------------
12 (months)

This simplifies to:


principal
interest = rate x -----------------------------
12(months)









PCLOAN5 Bottom Line Software 40













For periods of an odd number of days the formula becomes:




principal x days
interest = rate x -----------------------
360



The bankers loved it. They charged interest on a daily basis,
every day, one day at a time. This means they modified the formula to
look like this:


Formula for one year's interest (360 basis)


365 days
interest = rate x principal x -----------------
360 days

or


interest = rate x principal x 1.0139



This results in an interest amount 1.39% greater than would be
produced by the basic interest formula. This becomes significant for
lenders with large loan portfolios.

This type calculation is seldom used for calculating interest on
mortgages, almost never for home mortgages. Occasionally, when
dealing with a flexible lender, partial payments are made between
payment dates. When this is done, we must have a way to allocate the
interest for a partial payment period.

Loan Master provides both methods. It does not make judgments. It
does not make assumptions. You must tell it which method to use.


Recalculating A Schedule

When a new schedule is created, the interest and principal amounts
of each payment are calculated and the ending balance and other data
is stored in the file. This data is stored for every payment. A 30
year mortgage will have 361 records in the file. The first record is
not a payment but a record of the original amount, date. rate, etc.


PCLOAN5 Bottom Line Software 41












If you add or change a payment or a payment date, the interest,
principal, and ending balance amounts will change for each payment
after the payment you changed. When you have made such changes in a
schedule file, it becomes necessary to recalculate the schedule. The
recalculate function from the main menu is used to recalculate the
amended schedule.

The racalc option recalculates the current schedule file. If no
file is open, it will ask for a file name. You must give it the name
of an amortization schedule file.


You will then be asked if you have made any changes or added any
payments since the schedule was recalculated. If you reply "Y", the
schedule will be sorted into order by transaction date before it is
calculated. If you reply "N", the schedule will not be sorted. This
is a critical question. If you have changed the date order of any
payment and do not resort the schedule, the results will be
meaningless.


Printing Reports

All reports are printed from disk files. The disk files contain
amortization schedules that have been previously generated and which
may or may not have been modified by adding regular of irregular
payments.


Printing an Amortization Schedule

To print an amortization schedule you must first create the
schedule by using the menu function to create a schedule.

When a schedule exists on the disk, you can print an amortization
schedule by selecting the Print Printer option from the main menu. If
no file is open, you will be asked for a filename. Enter the file
name. Be sure the printer is on line and that it has plenty of paper.


Printing a summary schedule

A summary schedule lists year end totals only. All the monthly
transactions are omitted. The summary report allows summarizing an
entire 30 year mortgage on a single page.

To print a summary schedule, select the Print Summary option from
the Print submenu. You cannot print a summary report from the Schedule
submenu.




PCLOAN5 Bottom Line Software 42













Stopping an unwanted schedule.

You will occasionally start a long schedule only to discover you
made an error. To stop this schedule, simply press the escape key.
Press the key while the report is printing, not during a pause.

When the report is aborted, the menu will return. You will still
have your same data and can simply correct the error and reprint.

If your printer has a large memory buffer, it may print several
lines after the computer has returned to the menu. The only way to
stop most printers is to turn them off, then back on. If you do this,
you must reset the paper to top of form.


Customizing the Reports

Changing the Company Name

Selection 1 from the parameter file menu allows you to enter or
change the company name. This name is printed on the amortization
schedule comparison report. The report will state that it was prepared
by the company (or person) listed in the parameter file.


Changing the Schedule Header

The amortization schedule has a two line header. This is the
topmost two lines on the first page of the schedule. These two lines
can contain any text you like.

To change this text, select the option to change the Amortization
Schedule Header from the parameter file menu.

You will see a screen that looks like this:

Update the Amortization Schedule Header
...........................................................
. .
. Header line 1 The text of the current header will .
. .
. Header line 2 appear here in two lines. .
. .
...........................................................


You may enter any text you like on these two lines. Do not worry
about centering it, the program will do that for you.




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Change the Printer Setup

Option four from the parameter file menu allows you to specify data
about what your printer can and cannot print.


Selection this option, displays a screen that looks like this:


.....................................................
. .
. .
. Maximum printer width (characters 80 .
. .
. IBM compatible control codes T/F T .
. .
. IBM compatible graphics characters T/F F .
. .
. .
.....................................................


You should set this information to correspond to your printer.

Although most printers will print 132 characters per line using condensed
print, this version of the program does not print reports wider than 80
characters. The maximum printer width should be left at 80.


Change the Printer Control Codes.

A future version will allow printing reports in condensed print. The
current version does not send any printer control codes.


Printer Graphics Characters.

The report headers use the ascii character 205 " . " to make lines to set
off special areas of the report. If your printer does not print these
characters, the lines will appear as repeated strings of letters across the
page.

If this setting is set to F, the program will substitute the equal sign "
= " for this purpose. The difference is that the ascii characters make a
solid double line. The equal signs do not quit touch.








PCLOAN5 Bottom Line Software 44













The graphics divider line looks like this:

..........................................................
Annual Totals $12,345.67
..........................................................

The non graphics divider line looks like this:

==========================================================
Annual totals $12,345.67
==========================================================


Visual Update .

This setting is either "on" or "off".

The visual update system informs the user of what the program is doing at
every moment. This system is usually comforting to beginners and many times
obnoxious to experts. Turn it on or off as you like.

See the tutorial section for a more complete description of the visual
update system.


Financial Calculator

The program has two built in calculators, a loan calculator and a date
calculator. When you select the Calculator Mortgages option from the main
menu, you may choose one of these calculators:


Financial calculatons


.................................................................
le Print Interest Transaction Calculator Options QUIT .
............................. .................... ..............
. Amount of loan . .
. Payment amount . .
. Number payments . .
. Future value . .
. Present value . .
. Reg Z APR . .
.................... .


To calculate the amount of loan a specific series of payments can repay,
select Amount of loan by pressing the "A" key.




PCLOAN5 Bottom Line Software 45













This calculator screen will appear:

....... Calculate loan amount .........
. .
. Payment amount..... 0.00 .
. Interest rate...... 0.0000 .
. Number of payments. 0 .
. Payments per year.. 12 .
. Payment type....... 0 .
. .
.......................................
. Amount of loan..... .
.......................................
...... Constant principal at end ......


Enter the data requested. This calculator expects the same data and works
in the same manner as any business calculator except that you do not tell it
to calculate. When you make the last entry, payment type, the amount of loan
will be calculated and displayed.

The payment type specified is described on the bottom line of the
calculator box. If you change the payment type, the description will change.

Immediately after displaying the amount of the loan, the calculator will
return do the data entry mode, ready to accept another problem. When you are
finished, press ESC to return to the main menu.

The other calculators work the same way.


Date calculations

The date calculator allows the calculation of days between dates or past or
future dates.

The days between dates screen looks like this:

.... Calculate days between dates .....
. .
. Enter first date... 03/18/90 .
. Enter second date.. / / .
. .
.......................................
. Days between dates. .
.......................................
.......................................


The calculator assumes the first date is the system date, often, this will
not be the case. You may change the first date to any valid date.

PCLOAN5 Bottom Line Software 46













Next enter the second date, the calculator will instantly calculate the
days between these dates and display the result. The calculator will return
to the data entry mode and await more dates. You may enter and calculate days
between dates as long as you like. When you are ready to quit, press the ESC
key to return to the menu.


APR calculations


Calculating the Regulation Z Annual Percentage Rate is accomplished easily
with the APR calculator, even if the mortgage has points deducted from the
face amount.

The APR calculator looks like this:


..........................................................
. What is the gross amount financed 1,000.00 .
. What is the origination fee 10.00 .
. How many payment streams 1 .
. What is the length of one unit period 30 .
. What is the basis, 360/365. REG Z uses 360 .
..........................................................
. Enter data about Payment .
. payment streams Stream .
. 1 .
.........................................
. Payment amount 89.00 .
. Number of payments 12 .
. Periods to first pmt 1 .
. Odd days to first pmt 0 .
. .
. Gross amount financed 1,000.00 .
. Net amount financed 990.00 .
. Annual Percentage Rate 14.2377 .
.........................................

APR calculator data entry


What is the gross amount financed?

The gross amount financed is the total principal amount of the loan. If the
loan is a consumer loan, this amount will include credit insurance and
official filing fees if they are charged.

This is the amount of the loan before the "points" are deducted.




PCLOAN5 Bottom Line Software 47












What is the origination fee?

The origination fee is the "points". This amount does not include
application fees, credit report fees, or other fees that are paid to third
parties. It includes only the discount points.


How many payment streams?

This part can become complicated but for a normal mortgage loan it is not.
A normal mortgage or consumer loan has one payment stream.

A payment stream is one or more payments of the same amount paid once, or
paid repeatedly at regular periodic intervals. Twenty four monthly payments
of $125.00 each is one payment stream. One payment of $1200.00 payable two
years from now is one payment stream. A balloon note has two payment streams.
A normal mortgage with a secondary schedule would have two payment streams. A
normal mortgage with a secondary schedule and a balloon payment would have
three payment streams.

The APR calculator allows a maximum of three payment streams.


What is the length of one unit period?

Regulation Z calculations are made using the common 30 day month, 360 day
year method of computing interest. All years are 360 days. All months are 30
days.

One unit period is the normal time period between the regular payments of
this payment stream. The unit period for monthly payments is 30. The unit
period for quarterly payments is 90. The unit period for weekly payments is
7. Etc


What is the basis, 360/365?

Regulation Z uses the 360 day basis. The calculator will work also with the
365 day basis if you are interested in comparing results.














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.........................................
. Enter data about Payment .
. payment streams Stream .
. 1 .
.........................................
. Payment amount 89.00 .
. Number of payments 12 .
. Periods to first pmt 1 .
. Odd days to first pmt 0 .
. .
. Gross amount financed 1,000.00 .
. Net amount financed 990.00 .
. Annual Percentage Rate 14.2377 .


For each payment stream, you will be asked the following data:


Payment amount

Enter the amount of the payments in this stream. All payments in a payment
stream are the same amount.


Number of payments

How many payments are in this payment stream. If the loan has a balloon at
the 24th month, the number of payments in the first payment stream is 23, not
24.

The balloon payment would be the only payment in payment stream two.

You must know the dollar amount of the balloon payment. If you have not
already done so, use the Schedule Create function to create a schedule and
calculate the amount of the balloon payment for you.


Periods to first payment

How many complete payment periods will elapse before the first payment is
due? This is tricky because although Reg Z assumes all months are 30 days.
It does not apply the 30 day month rule here.

If the payments are monthly and the loan is dated February first, the first
payment is due on March first. This is obviously not 30 days but it is the
correct date. In this case, the number of unit periods is one. If the first
payment is due anytime in April, the number of unit periods is two. If the
payment is due in February, the number of unit periods is zero.




PCLOAN5 Bottom Line Software 49












Odd days to first payment

This is the most difficult part of Reg Z calculations because reg Z runs in
reverse. If the number of unit periods is one, the number of odd days is the
number of days from the date one unit period before the date of the first
payment to the date of the note.

Date of note 02-03-91

Date of first payment 03-05-91

Number of unit periods 1

Odd period begins 02-03-90

Odd period ends 02-05-90

Odd days 2


Multiple payment streams

If there are two or three payment streams, the calculator screen will
display two or three columns accordingly. Enter the data for each payment
stream.


Tutorial. How to Use the Program


Start the program by logging on to the subdirectory in which it is
installed and then type its name.

PCLOAN5


When the main menu appears, press the "S" key followed by the "C" key. The
"S" key selects the Schedule submenu. When the Schedule submenu is displayed,
the "C" key selects the Create option.

Since you are creating a new schedule file, you will be asked for a new
filename. Enter the filename TESTME. The program will add the extension
".SCH" to the filename you entered and will create a file named TESTME.SCH.










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Make a new schedule

Next you will see the mortgage data entry screen, it will look like this:


..............................................
. Date of mortgage : / / .
. Date first payment: / / .
. Mortgage amount : 0.00 .
. Number payments : 0 .
. Payments per year : 0 .
. Initial rate : 0.0000 .
. Interest basis : 0 .
. Payment type : 0 .
. Payment amount : 0.00 .
. No pmts Int only : 0 .
. Balloon at pmt no.: 0 .
. .
..............................................



Enter the following data:

..............................................
. Date of mortgage : 01/01/91 .
. Date first payment: 02/01/01 .
. Mortgage amount : 123,456.00 .
. Number payments : 120 .
. Payments per year : 12 .
. Initial rate : 12.0000 .
. Interest basis : 0 .
. Payment type : 0 .
. Payment amount : 0.00 .
. No pmts Int only : 0 .
. Balloon at pmt no.: 0 .
. .
..............................................

Do not enter the Interest basis. Press the return key while the 0.00 is
displayed in that field. PCLOAN5 will offer the valid options displayed in a
menu:









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Selecting interest basis

.................................................
. Date of mortgage : 01/01/91 .
. Date first payment: 02/01/91 .
. Mortgage amount : 123,456.00 .
. Number payments : 120 .
. Payments per year : 12 .
. Initial rate : 12.0000 .
. Interest basis : 0 .
. Payment type : 0 .
. Payment amount : 0.00 .
.
. . Valid interest basis choices are: ...............
. . 1 360 day year, 360 divisor, whole period .
.... . 2 365 day year, 360 divisor, actual days accrual. .
. 3 365 day year, 365 divisor, actual days accrual. .
....................................................


The first selection will be highlighted. Press to select it. You
may also select an option by pressing the number corresponding location in
the list. eg. 1, 2, or 3.


Again, do not select the payment type. When the payment type field is
highlighted, waiting for an entry. Press the key while the 0.00 is
displayed. Again you will be shown a menu of all valid choices:


Selecting payment type

.................................................
. Date of mortgage : 01/01/91 .
. Date first payment: 02/01/91 .
. Mortgage amount : 123,456.00 .
. Number payments : 120 .
. Payments per year : 12 .
. Initial rate : 12.0000 .
. Interest basis : 1 .
. Payment type : 0 .
. Payment amount : 0.00 .
.
. . Valid payment types are: ........................
. . 1 Level payment amount, take interest first. .
.... . 2 Level principal amount + all accrued interest. .
. 3 Level payment amount at beginning of period. .
. 4 Canadian, monthly payment, semiannual compound. .
....................................................



PCLOAN5 Bottom Line Software 52












The first option will be highlighted. Press to select it.

Note that the previous entry "Interest Basis" was filled in by the program
when you pressed the key to select the first option of the prior
option menu. When you press to select the payment type, the program
will again fill in the blank space on the screen. It will replace the 0.00
with the payment type selected from the payment options menu.


Computing the payment amount

..............................................
. Date of mortgage : 01/01/91 .
. Date first payment: 02/01/01 .
. Mortgage amount : 123,456.00 .
. Number payments : 120 .
. Payments per year : 12 .
. Initial rate : 12.0000 .
. Interest basis : 1 .
. Payment type : 1 .
. Payment amount : .
. No pmts Int only : 0 .
. Balloon at pmt no.: 0 .
. .
..............................................


The program is now ready to accept or to compute a payment amount. The
payment amount field still contains 0.00 and is highlighted.

Again, do not enter anything. Press the key while the 0.00 payment
amount is highlighted and the program will instantly compute and display the
payment amount needed to amortize the loan you have described.



..............................................
. Date of mortgage : 01/01/91 .
. Date first payment: 02/01/01 .
. Mortgage amount : 123,456.00 .
. Number payments : 120 .
. Payments per year : 12 .
. Initial rate : 12.0000 .
. Interest basis : 1 .
. Payment type : 1 .
. Payment amount : 1,771.23 .
. No pmts Int only : 0 .
. Balloon at pmt no.: 0 .
. .
..............................................



PCLOAN5 Bottom Line Software 53












You can experiment with interest only and balloons later. For now press the
PgDn key, or press the return key twice. Pressing the return key twice
selects the 0.00 entries already displayed in the interest only and balloon
fields. Pressing the PgDn key skips these fields completely and leaves their
contents at 0.00.

The screen will clear and you will see a message that informs you the
program is computing the final maturity date. This computation will take
several seconds.

The next screen will be the visual update screen. It will show the results
of each and every payment calculation for the entire amortization schedule.
The numbers will change very quickly. You will not be able to read the
results of each payment, but you will be able to visualize the progress made
as the amortization process progresses. This screen is optional and can be
turned off by the Options selection from the main menu.

The completion gauge is displayed below the visual status. It is displayed
even if the visual display is turned off.


Viewing or Browsing the schedule on screen

The schedule is now complete and the screen is displaying the main menu.
Use the arrow keys to highlight the "Schedule" option, then press the
key. The "Schedule" submenu will appear below the "Schedule" option
of the main menu. Now use the down arrow key to select the "Browse" option
from the submenu. Press and the browse screen will appear.

Press Ctrl-PgDn and the browse screen will go to the bottom of the file, to
the last payment. Use the right arrow key to cause the highlighted field to
move across the screen to the right. When it reaches the right edge of the
screen, the column on the left side of the screen will disappear. All other
columns will move one column to the left and a new column will appear on the
right side of the screen. This process is called scrolling. It looks like you
are moving a wide spread sheet behind the screen. The spread sheet is being
moved from right to left. As one column slides out of view on the left,
another slides into view from the right.

You can use the browse screen to view and if you like, to change, any
information in the file.

The highlight is on the first column on the left. This column contains the
payment number of the transaction on this line. In this case it is the last
transaction of the loan, number 120.








PCLOAN5 Bottom Line Software 54













Use the right arrow key to move the cursor to the left, you will see these
values as the data scrolls from left to right.

Column Data description Contents

1 Transaction no 120
2 Transaction date 01/01/01
3 Rate 12.00
4 Payment amount 1772.24
5 Interest Basis 1
6 Payment Type 1
7 Days interest 30
8 Interests due 17.55
9 Interest paid 17.55
10 Interest unpaid 0.00
11 Cumulative interest 89,092.61
12 Principal due 1,754.69
13 Principal paid 1,754.69
14 Principal prepaid 0.00
15 Principal unpaid 0.00
16 Principal advanced 0.00
17 Beginning Balance 1754.69
18 Ending Balance 0.00
19 Force Interest N
20 Force Principal N


Notice that the payment amount of the last payment is not the same as the
payment amount calculated and displayed on the data entry screen. The
difference between the calculated payment amount, $1,771.23 and the final
payment amount, represents the cumulative rounding errors involved in the
process. These errors are caused by the mathematics of the process and are
unavoidable. The actual payment necessary to exactly amortize this loan is
$1,771.234941. This is rounded to $1,771.23 before the amortization process
begins. Each interest payment is also rounded to exact cents.


Finding a payment by payment number

Press the ESC key to leave the browse screen. You are now back at the main
menu. Press the "T" key followed by the "G" key. These keys will invoke the
Transaction Go to function. You will be asked to enter a transaction number.
Enter 72.

The main menu will reappear. Press the keys "S", followed by "B" to invoke
the Schedule Browse function again. Notice that the payment at the top of the
screen is payment number 72.





PCLOAN5 Bottom Line Software 55












Finding a payment by payment date

Press the ESC key again to return to the main menu. Use the arrow keys to
highlight the Transaction option. Press return. The Transaction submenu will
appear. Use the down arrow key to select Seek Date. Press . You are
now asked to enter a date. Enter the date 03-05-93. You press only the number
keys. You do not enter the separators "-" or "/" used in the date.

Again the main menu is available. Select the Schedule Browse function
again. Notice that the payment at the top of the screen is number 26, its
date is 03/01/93. This is the first payment before the date you entered.

Press Esc to exit the Browse screen. Select the Schedule View function by
pressing the "S" key, then the "V" key. Notice that the payment at the top of
the screen is number 26, dated 03/01/93. This is the same payment you saw at
the top of the previous browse screen. If you return to the browse screen
now, that same payment will still be at the top of the screen.

Press the page up key and watch the schedule scroll up to earlier payments.
Press the page down key to see the opposite.


Printing the entire schedule

When you are through Viewing the schedule, press the ESC key to return to
the main menu. Select the print option by pressing the "P" key to select the
Print submenu, then press the "P" key again to select printer.

The next screen asks for the name and address of the borrower. You many
enter the name and up to four lines of address, comments, collateral
description, or any other text.

When you enter the last line of the address, the completion gauge will keep
you informed of the printing progress. Notice that the completion bar will
get ahead of the printer. This happens because it is measuring the number of
transactions actually sent to the printer, not the number of transactions
actually printed. Most printers have their own internal memory and can accept
data from the computer much faster than they can print it.


Printing a range of payments

When the print job is complete, it will take quit a while since there
are 120 transactions, select the Print Incomplete option from the main menu.
When you are asked for the beginning and ending payments, tell it 12 and 24
respectfully. Again you will be asked for the name and address of the
borrower, you may either enter text, or press the page down key to skip this
step.

This time the schedule will include the header followed by only
transactions 12 through 24.


PCLOAN5 Bottom Line Software 56













Printing an annual summary

For the final print lesson, select option Print Summary. follow the
instructions on the screen. Press page down to skip the borrowers name and
address. This schedule will list only year end results.


Adding a secondary schedule

Select Schedule Add schedule from the main menu. If you are asked for a
filename, tell it TESTME (assuming you have just completed the above
exercises!).

You will be asked for the following information:


..Enter secondary schedule ......................
. .
. Date of first payment : / / .
. Number payments : 0 .
. No Pmts per year : 0 .
. Payment amount : 0.00 .
. .
.................................................


We will add a $100.00 quarterly prepayment schedule to the existing
schedule.

Since the date of the original loan was 01/01/91, the first quarterly
payment would be due 04/01/91. Enter that date as the date of the first
payment (of the secondary schedule).

This is a ten year schedule, the number of quarterly payments would be 40.
Enter 40 for the number of payments in the secondary schedule.

Since the payments will be quarterly, enter 4 payments per year.

The payment amount we specified was $100.00. Enter that amount as the
payment amount.












PCLOAN5 Bottom Line Software 57













The screen should look like this:


..Enter secondary schedule ......................
. .
. Date of first payment : 04/01/91 .
. Number payments : 40 .
. No Pmts per year : 4 .
. Payment amount : 100.00 .
. .
.................................................


Again the visual update system will report each payment as it is added to
the schedule. This is very quick because no calculations are done. These
payments are simply added to the end of the file. When all the payments have
been entered, the schedule will be sorted into order by transaction date and
recalculated.

When this process is completed, you can again use the Schedule Browse,
Schedule View, or the Print Printer functions to see the results.


Schedule File Specifications

The amortization schedule files produced by the program all have the same
structure. A list of field names along with their data types is reproduced
here. This file is a Dbase compatible file and can be read or modified with
Dbase III.


Field Field Data Field Dec Description
No Name Type Width

1 MTRAN_NO Numeric 3 Transaction number
2 MTRAN_DATE Date 8 Transaction due date
3 MACCR_RATE Numeric 7 4 Accrual interest rate
4 MPMT_AMT Numeric 12 2 Scheduled payment
5 MINT_BASIS Numeric 1 Interest basis
6 MPMT_TYPE Numeric 1 Payment Type
7 MACCR_DAYS Numeric 4 Days since last payment
8 MINT_DUE Numeric 12 4 Interest Due
9 MINT_PAID Numeric 12 2 Interest paid
10 MINT_UNPD Numeric 12 4 Interest unpaid (after)
11 MINT_ACUML Numeric 12 2 Total interest paid
12 MPRIN_DUE Numeric 12 2 Principal Due, unpaid
13 MPRIN_PAID Numeric 12 2 Principal paid
14 PRINPREPD *Numeric 12 2 Principal prepaid
15 MPRIN_UNPD *Numeric 12 2 Principal past due
16 MPRIN_ADV *Numeric 12 2 Principal increase
17 MBEG_BAL Numeric 12 2 Balance before payment

PCLOAN5 Bottom Line Software 58












18 MEND_BAL Numeric 12 2 Balance after payment
19 MFORCE_INT Logical 1 Force this interest amount
20 MFORCE_PRN Logical 1 Force this principal
21 MDATE_PAID *Date 8 Date actually paid
22 MINCOME_91 *Numeric 12 2 Fasby 91 interest income
23 FEES_91 *Numeric 12 2 FASBY 91 fee income
24 MNPV_91 *Numeric 12 2 FASBY 91 Net recorded value
25 MTRANCODE Numeric 3 2 Transaction type

(*) indicates fields not currently in use by this version of the system.
They will be activated in future releases as time permits and in priority of
user requests.


Detailed Field Descriptions


MTRAN_NO Numeric 3 Transaction number

The transaction number. Each file has a transaction number zero which is
not a payment but represents the original status of the loan. It stores
the original loan amount, payment amount, interest rate, dates of mortgage
and first payment, payment frequency and types, and any other information
necessary to specify the terms of the original mortgage.


MTRAN_DATE Date 8 Transaction due date

The transaction date. This is the scheduled data of each transaction. When
a real mortgage is paid, the actual payment may or may not be made on this
date.


MACCR_RATE Numeric 7 4 Accrual interest rate

This is the interest rate, the accrual rate at which the interest will be
computed for this payment. This rate will be applied to the balance due
since the date of the prior payment. To change the interest rate between
payments, it is necessary to add a transaction on the date the rate is to
change. The added transaction will have the new rate but the payment amount
will be zero.


MPMT_AMT Numeric 12 2 Scheduled payment amount

The scheduled payment amount. This amount will usually be the same from
payment to payment but it is not required to be. It will be applied to the
interest and principal according to the rule set by the field named
MPMT_TYPE.




PCLOAN5 Bottom Line Software 59













MINT_BASIS Numeric 1 Interest basis

The interest basis refers to the method of determining the time, the length
of the period, when computing interest.


1 360/360 Normal periodic amortization
(Always computes one period's interest)

2 365/360 Actual day amortization with 360 divisor

3 365/365 Actual day amortization with 365 divisor

4 Same as 1 but computes 0 interest for partial period



MPMT_TYPE Numeric 1 Payment Type

The payment type determines how the payment amount is allocated to interest
and principal.


1 Normal amortization, interest plus principal. Take the interest first
then apply what ever is left to the principal.

2 Constant principal reduction + all accrued int. Apply the full payment
amount specified to the principal and collect enough additional
payment to pay all interest due.

7* Rule of 78ths, Sum of years digits. Split the payment by taking the
accrual factor for this month and multiplying it by the total finance
charge. The result is the interest due this month.


MACCR_DAYS Numeric 4 Days since last payment

Days since the date of last payment. If interest basis is 2 or 3, this is
the actual number of days for which interest will be computed.


MINT_DUE Numeric 12 4 Interest Due

The interest amount due as of the date of this payment.


MINT_PAID Numeric 12 2 Interest paid

The interest amount actually paid from this payment.




PCLOAN5 Bottom Line Software 60












MINT_UNPD Numeric 12 4 Interest unpaid (after)

The interest remaining due but unpaid after the payment due today was paid.
This amount is normally zero but may be greater than zero if the payment
amount is not large enough to pay all the interest due.


MINT_ACUML Numeric 12 2 Total interest paid

Accumulated interest paid since the mortgage began. This is the total of
all the interest amounts paid from the first payment to and including the
current payment. At the date of the final payment, when the balance reaches
zero, this field will contain the total interest cost for the entire life
of the mortgage.


MPRIN_DUE Numeric 12 2 Principal Due, unpaid

Principal Due as of the date of the payment. This is the amount of
principal which should be paid with the current payment.


MPRIN_PAID Numeric 12 2 Principal paid

Principal paid with this payment. This is the amount of principal actually
deducted from the balance with this payment.


PRINPREPD Numeric 12 2 Principal prepaid(*)

Principal prepaid. This is the amount of principal that has been deducted
from the balance before it was due.


MPRIN_UNPD Numeric 12 2 Principal past due(*)

When a payment is not sufficient to pay the entire amount of principal due,
this field will contain the principal amount remaining unpaid.


MPRIN_ADV Numeric 12 2 Principal increase

Principal advance. Increase in amount of principal. This amount will be
added to the principal balance.

MBEG_BAL Numeric 12 2 Balance before payment

This is the balance due before this payment is paid. It is always the same
as the ending balance from the previous payment.




PCLOAN5 Bottom Line Software 61












MEND_BAL Numeric 12 2 Balance after payment

This is the principal balance remaining unpaid after the current payment
has been paid.


MFORCE_INT Logical 1 Force this interest amount

In some cases, an interest payment is scheduled which has no relationship
to the actual interest accrued to the date of the payment. One example
would be prepaid interest.

When this field is set to T, (true), the amount specified in the interest
payment field will be applied to interest regardless of the amount due. The
amount prepaid or if the case may be, unpaid will be carried forward to
future payments.


MFORCE_PRN Logical 1 Force this principal amount

In some cases, a principal payment is scheduled which has no relationship
to the actual interest accrued to the date of the payment. In other words a
payment is scheduled in which the entire amount will be applied to
principal and the interest due will just be ignored.

When this field is set to T, (true), the amount specified in the principal
payment field will be deducted from the balance regardless of the amount of
interest or principal due.

MDATE_PAID Date 8 Date actually paid(*)

Date this payment was actually paid. In real life, most payments are paid
on a date close to but not actually on the exact due date. This field
allows the user to maintain a schedule which shows both the due data and
the date paid. Use the browse function to record this date.

MINCOME_91 Numeric 12 2 Fasby 91 interest income
MFEES_91 Numeric 12 2 Fasby 91 fee income
MNPV_91 Numeric 12 2 Fasby 91 Net Recorded Value
MTRANCODE Numeric 3 0 Transaction code













PCLOAN5 Bottom Line Software 62












Data file header

Record Zero, loan setup information:

The first record in the data file stores the initial information about the
loan, not a transaction but information that specifies how the loan is to be
repaid.

Each field in the header record stores the following information:


Field name: Data stored:
------------ ----------------------------------------------------------
mtran_no Balloon payment number
mdate_tran Date note
maccr_rate Initial interest rate
mpmt_amt Initial payment amount
mint_basis Initial interest calculation basis
mpmt_type Initial payment type
maccr_days Payment frequency, payments per year
mint_due Initial payment type
mint_paid Month FYE
mint_unpd Origination fees, points
mint_acuml Schedule style
mprin_due Total negative amortization
mprin_paid Number interest only payments
prinprepd Principal prepaid, paid before due.
mprin_unpd Principal due but unpaid.
mprin_adv Face amount
mbeg_bal Number of payments to amortize contract
mend_bal Face amount
mforce_int Variable rate indicator t/f
mforce_prin Negative amortization indicator t/f
mdate_paid Date first contract payment
mincome_91 FASBY 91 flag, 1 = true, -1 = false
mfees_91 Capitalizable expenses
mnpv_91 FASBY 91 Net Recorded Value
mtrancode MUST BE 0, used to sort header record to top of file.















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Frequent Questions

Can the amortization schedules be made to agree exactly with the bank's
interest and principal figures?

PCLOAN5 must make some assumptions the bank does not make. PCLOAN5 assumes
you make every payment EXACTLY on the due date. If you do so, the schedule
you print with PCLOAN5 should agree exactly (In real life, plus or minus a
few cents for rounding differences.) with the bank's figures. If you miss the
due date on even one payment, the schedule will never again agree exactly
with the bank's. Being early is just as troublesome as being late.

The bank computes and accumulates one day's interest every day. When you
make your payment, they take exactly the amount of interest accumulated since
the last payment with no regard as to how much interest is "due" for one
month. You are charged interest for the exact number of days elapsed since
the last payment regardless of whether it was ten days or forty days.

PCLOAN5 offers an interest option to calculate by this method. You can
select this method by selecting the interest options menu. This selection
however must still assume that each payment is made on the payment date. In
real life this is not always the case.

In those cases when it is necessary to check the accuracy of the lender's
interest computations, Bottom Line Software has a program that solves the
problem. It is called INTEREST CHECKER.

INTEREST CHECKER makes no assumptions and imposes no structure. You enter
every payment date. You can pay any amount on interest or principal on any
date. The interest rate can be changed on any date, even between payments.

If it can happen on a real loan, INTEREST CHECKER can calculate it.



QUESTION:

How does PCLOAN5 handle rounding?

PCLOAN5 carries all numeric calculations to the limits of the software's
accuracy, 13 to 14 significant figures. This refers to the total number of
digits in the number, not to the number of decimal points. For Example:


123,456,789.01234

123,456.78901234

Both of the above numbers have fourteen significant figures. The first
number has five decimal digits, the second has eight decimal digits.

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When calculating a payment amount, it is immediately rounded to exact
cents. Normal rounding conventions are used.

Payment Rounded

1,234.6650 1,234.6700

1,234.6649 1,234.6600

The program does this because this is the way it is done on real loans.

When calculating an interest amount, it too is immediately rounded to exact
cents.

By rounding the payment amount and each interest payment amount, the
principal payment amounts are always in exact cents and we avoid odd
fractional payments and odd fractional remaining balances.



QUESTION:

How can I get the total interest paid over the life of the loan without
actually printing the entire schedule?

Use the browse function to look at the last payment. Press the Control Down
Arrow key to go to the bottom of the schedule. Look in the column labeled
Cumulative interest. The last amount in this column is the total interest
paid over the life of the loan


You may estimate this amount by multiplying the total number of payments by
the payment amount and subtracting the principal amount. These two numbers
will almost never agree exactly.


Which is correct?

Both are correct but only the first method is exact.

To be exact, it is necessary to round off the calculation of the payment
amount and each and every interest payment to the nearest cent. This is
exactly what the program does.

This problem is caused by the fact that the EXACT payment amount required
does not equate to an even number of cents (The smallest unit of money we
have available). If we round everything off to the nearest penny and compute
our schedule, we will find when we are finished we have a total interest
amount in which we can have absolute confidence. THIS is the EXACT amount of
interest paid on this loan. It may be slightly more or less than the
absolutely correct amount but it is the actual amount paid.

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If we take this exact amount and work backwards we discover.... Oooops, our
APR is no longer accurate. We originally quoted 12.0000% but working
backwards, the actual rate computes out to something different. it may be
slightly more or slightly less but almost never exactly the quoted rate.

Mathematics always extracts its price. We can pay it up front, or on the
back end, but we will always pay. In real life, the adjustment is made on the
final payment. It will be a little larger or a little smaller than the quoted
payment. This is the way the program works. When the final payment is
reached, the interest is computed and charged. The principal payment is then
simply the remaining balance. This may or may not be the same as the regular
payment amount less the accrued interest.


QUESTION:

How does the bank compute interest?

Most bank software keeps and calculates the interest amount accurate to
only four decimal places (1/100 of one cent). PCLOAN5 calculates all dollar
amounts accurate to 13 to 14 significant figures. This accuracy is much
greater than that used by the software in most bank computers. This is not to
put down bank computers. They are programmed in COBOL almost exclusively and
COBOL, being a business language is designed to keep up with dollars and
cents.

Many banks still use the rule of 78ths to compute interest on consumer
loans. The rule of 78ths is a very old system that originated in the days
when all interest was calculated longhand on a piece of paper. It was a very
good system and greatly reduced the work of lenders in the days before
computers. This is sometimes called add-on interest, flat interest, or pre
computed interest. It does not agree exactly with the interest computed using
the daily accrual method usually called simple interest amortization. It will
be fairly close but never the same. Most people believe they really get
cheated when this system is used. Not so. If the APR is the same, the total
dollar amount of interest paid will be the same. The rule of 78ths does
however apply more interest to the early months of the contract and less
interest to the later months.

The rule of 78ths can be applied to a period of any length of time. It
could easily be used to compute daily accruals just like the normal daily
interest accrual used in simple interest loans. This is never done. It is
always used on a monthly basis.

How can you tell which system is being used? The best way is to read the
note. If the face amount of the note includes the interest, it is rule of
78ths. If the face amount of the note is the same as the amount your
borrowed, it is simple interest. If you get an interest rebate for paying off
the loan early, it is rule of 78ths. If the percentage rate is some odd
figure like 13.96 instead of 14.00 or 13.75, it is probably rule of 78ths.


PCLOAN5 Bottom Line Software 66













QUESTION:

How do I compute the APR for a loan with points?

Points are a fee charged by lenders to increase their income and
profitability with out "raising the rate" on the loan. Points are usually
expressed as a percentage of the face amount of the loan. common amounts are
1 to 2 percent. Each percent is one point.

If a $100,000.00 mortgage has two points charged, the dollar amount of the
points is $2,000.00. This is 0.02 x $100,000.00.

To compute the APR for this loan, display the loan calculations menu,
select the APR function and then enter the data requested.

When entering the amount of the loan, enter the "net" proceeds.
$100,000.00 - $2,000.00 or $98,000.00. This is the amount they are actually
"lending". The borrower never sees the points.


QUESTION:

The screen display is so dim, I can't read it.

PCLOAN5 attempts to adjust itself to your monitor. If your monitor is a
color monitor, it prints white characters on a blue background. If your
monitor is black and white, it displays white characters on a black
background.

Some computers have a graphics display card with a monochrome monitor. The
graphics display card tells PCLOAN5 that you have a color monitor. When the
blue and white screens are printed on your monitor, there is not enough
contrast.

If you have this problem, select the options submenu, visual options and
set the default to force monochrome operation.
















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INDEX


Auto install . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 4, 5
Balloon . . . . . . . . . . . . . . . . . 4, 32, 36, 37, 48, 49, 51, 53, 54, 63
Basis 3-5, 19, 20, 28, 30, 32, 34, 35, 40, 41, 47, 48, 51-53, 55, 58, 60, 63, 66
Colors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Customizing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 43
Editing data
Browse screen . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
FASBY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 59, 62, 63
Files required . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 24
Installation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2, 4-6
Interest formula . . . . . . . . . . . . . . . . . . . . . . . . . . . 40, 41
Interest only . . . . . . . . . . . . . . . . . . . . . . . . . 36, 37, 54, 63
Loan with points . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 67
Menu . . 2, 3, 5, 7-11, 14, 15, 17, 19, 20, 22, 23, 26, 27, 31, 32, 34-36, 39,
42-47, 50-57, 64, 67
Menu operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Negative amortization . . . . . . . . . . . . . . . . . . . . . . . . . 24, 63
Pause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Payment type . . . . . . . . . . . 4, 5, 32, 35, 40, 46, 51-53, 55, 58, 60, 63
Print a schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Requests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3, 21, 59
Rounding . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5, 55, 64, 65
Rule of 78ths . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60, 66
Stopping an unwanted schedule . . . . . . . . . . . . . . . . . . . . . . 4, 43
Variable rate loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19























PCLOAN5 Bottom Line Software 68







 January 1, 2018  Add comments

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