Teaser Rates
When pricing through a configurable form, a
pricing option setup with a Teaser Rate will set an initial rate based on the
Pricing template setup.
Then when the teaser duration is up, a rate change is initiated with the rate being dictated by the selected "Contract Yield" from the pricing template.
Any changes to the initial rate or rate changes after applying the teaser rate will not be impacted by the initial teaser rate setup. For example
1. Teaser rate setup for 0% interest for the first 12 months of the contract.
2. The normal rate is 10% – as determined by the rate table for the pricing template
3. Application is submitted with 36 month term
a. So the initial rate is 0%, with a rate change of 10% 12 months into the contract.
4. Prior to booking the contract, the customer decides to change to a 48 month term and there is no impact to the rate
a. User can simply modify the term from 36 to 48 monthly payments and resolve for payment amount. The 0% initial rate and the 10% rate change 12 months in will remain untouched
5. Again, the customer comes back and wants a 60 month term which falls outside of the teaser promotion and should have a single rate, from commencement, at 12%
a. The user can set the number of payments to 60, remove the rate change, and set the initial rate to 12%, then resolve for the payment amount.
b. In this case, there is no way to “get back” to the teaser rate unless they go through a pricing form and, essentially, re-price the deal..
Teaser Rates apply to Loans Only.
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