The New Loan income card can be used to model new loans being taken out in the future. This card will result in a one-time income inflow, followed by a long-term expense as the debt is repaid. Please note that existing Loans should be modeled within the Profile > Net Worth section.
You can add a new loan into RightCapital within the Income section of the Profile (or the Income step of the initial data entry process), by clicking Add Income > Other > New Loan:
Within this card you can specify the loan type and dollar amount, as well as the interest rate and loan term. You can also choose a loan to refinance, which will apply a one-time payment to the selected loan. Any excess income will be added to cashflows.
- The loan income can be found in the Income Inflows > Other Inflows column of the Cash Flows > Summary.
- The debt payments can be found in the Expenses section in the Cash Flows > Summary. Mortgage payments will appear within the Housing (or Rental & Vacation Home) column, while other debt payments will appear in the Debt column.
- The loan balance can be found and tracked within the Cash Flows > Net Worth screen. Mortgage balances will appear within the Mortgage column, while other loan balances will appear in the Other Loans column.
Adding a New Loan card within the Profile > Income section will add that future loan to the Current Plan in the Retirement Analysis module. You can propose a future loan using the same card in the Retirement Analysis > Action Items.
