Common use of Interest rate differential charge Clause in Contracts

Interest rate differential charge. How we calculate the interest rate differential charge. The interest rate differential charge is the present value of: the instalments that you would have paid on your loan from the date you prepay to the end of the term of the loan, and the principal balance that you would have owed at the end of the term of the loan, minus the present value of: the instalments that would be due on a new loan if the principal balance, the term and the amortization period of the new loan were the same as the remaining principal balance, the remaining term and the remaining actual amortization period of your loan but the interest rate on the new loan was the comparison rate, and the principal balance that would be due on the new loan at the end of the term of this loan. To calculate the present value of the amounts described above we use a formula that credits you for the fact that we will receive the interest rate differential charge immediately instead of receiving payments over the term of the loan.

Interest rate differential charge. 5.21.1 How we calculate the interest rate differential charge. The interest rate differential charge is the present value of:  the instalments that you would have paid on your loan from the date you prepay to the end of the term of the loan, and  the principal balance that you would have owed at the end of the term of the loan, minus the present value of:  the instalments that would be due on a new loan if the principal balance, the term and the amortization period of the new loan were the same as the remaining principal balance, the remaining term and the remaining actual amortization period of your loan but the interest rate on the new loan was the comparison rate, and  the principal balance that would be due on the new loan at the end of the term of this loan. To calculate the present value of the amounts described above we use a formula that credits you for the fact that we will receive the interest rate differential charge immediately instead of receiving payments over the term of the loan.

Interest rate differential charge. 5.21.1 How we calculate the interest rate differential charge. The interest rate differential charge is the present value of: • the instalments that you would have paid on your loan from the date you prepay to the end of the term of the loan, and • the principal balance that you would have owed at the end of the term of the loan, minus the present value of: • the instalments that would be due on a new loan if the principal balance, the term and the amortization period of the new loan were the same as the remaining principal balance, the remaining term and the remaining actual amortization period of your loan but the interest rate on the new loan was the comparison rate, and • the principal balance that would be due on the new loan at the end of the term of this loan. To calculate the present value of the amounts described above we use a formula that credits you for the fact that we will receive the interest rate differential charge immediately instead of receiving payments over the term of the loan.

Interest rate differential charge. 7.21.1 How we calculate the interest rate differential charge. The interest rate differential charge is the present value of: • the instalments that you would have paid on your loan from the date you prepay to the end of the term of the loan, and and‌ • the principal balance that you would have owed at the end of the term of the loan, minus the present value of: • the instalments that would be due on a new loan if the principal balance, the term and the amortization period of the new loan were the same as the remaining principal balance, the remaining term and the remaining actual amortization period of your loan but the interest rate on the new loan was the comparison rate, and • the principal balance that would be due on the new loan at the end of the term of this loan. To calculate the present value of the amounts described above we use a formula that credits you for the fact that we will receive the interest rate differential charge immediately instead of receiving payments over the term of the loan.