With interest rates increasing over the last couple of years, sometimes buying the rate down can be a great strategy. A buydown is a way for a lessee to obtain a lower interest rate and payments by having points paid up front at closing. Seller-paid buydowns are the most common type of lease buydown.

People buy and sell notes all of the time. Sometimes they only want to buy or sell a partial of the note. We had a customer request assistance on purchasing a partial of a note utilizing TValue software.

Per diem interest is the interest charged on a loan on a daily basis. The finance charge is interest calculated since the last time a payment was made. Often, you have a loan payoff at a point in time and it doesn’t close and you need to determine the per diem interest for each day the loan doesn’t get paid off.

The Government Accounting Standards Board (GASB) issued Statement No. 96, guidance on the accounting and financial reporting for subscription-based information technology agreements (SBITAs). This statement established that a SBITA results in a right-to-use asset and a corresponding subscription liability.

In 1984, the Tax Reform Act set provisions for applicable federal rates (AFRs). This is a minimum tax rate that must be charged on all loans, including personal/family loans. The IRS provides various prescribed rates for federal income tax purposes each month and TimeValue Software offers them on our website at Applicable Federal Rates | TimeValue Software.