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.
TValue is a popular tool for calculating the blended rate on a variable rate loan or for multiple loans in a portfolio. This is also known as the weighted average rate. With TValue, it is an easy exercise to get this magic number. Here are two examples of different customer cases we recently handled.
Many of our customers use TValue amortization software to track payment activity and balances on their loans. Our Support team often speaks to customers who want to know if TValue will handle late fees. TValue is not a loan servicing product, although many users use TValue for that purpose, which includes managing late fees.