Bug 364987

Summary:	Edit Loan Account doesn't properly handle variable rate loans
Product:	[Applications] kmymoney	Reporter:	mike-harmon
Component:	general	Assignee:	KMyMoney Devel Mailing List <kmymoney-devel>
Status:	CONFIRMED ---
Severity:	major	CC:	tim.rittman
Priority:	NOR
Version First Reported In:	5.1.3
Target Milestone:	---
Platform:	Microsoft Windows
OS:	Microsoft Windows
Latest Commit:		Version Fixed In:
Sentry Crash Report:

Description mike-harmon 2016-07-02 00:29:52 UTC

Hi, KmyMoney doesn't seem to be handling changes to interest rates on loan accounts correctly.  I have a loan account that tracks a 5/1 ARM - a mortgage with an initial rate for 5 years which can then change every 1 year after the initial 5.  

What should happen is that on the date a new rate becomes active, KmyMoney should re-amortize the remaining balance over the remaining duration, using the new rate.

What is happening instead is a re-amortization from the loan's inception using the new rate, with KmyMoney re-calculating the loan's duration.  The step in the wizard that asks "When should the changes become active?" doesn't seem to do anything.

In addition, if I leave the interest rate blank, which is supposed to cause the app to re-calculate it based on the payment amount, it instead becomes 0.

Reproducible: Always

Steps to Reproduce:
1.  Create a loan account, and make payments against it for some number of loan periods.
2.  Change the interest rate of the loan, effective some time within the loan duration.
3.  Observe that the loan duration has changed, as if the amortization since inception was based on the new rate.

Actual Results:  
The loan is re-amortized from inception with the new rate.

Expected Results:  
The loan should be re-amortized as-of the effective date of the change.

Comment 1 Justin Zobel 2022-10-21 23:59:59 UTC

Thank you for reporting this bug in KDE software. As it has been a while since this issue was reported, can we please ask you to see if you can reproduce the issue with a recent software version?

If you can reproduce the issue, please change the status to "CONFIRMED" when replying. Thank you!

Comment 2 Bug Janitor Service 2022-11-05 05:08:43 UTC

Dear Bug Submitter,

This bug has been in NEEDSINFO status with no change for at least
15 days. Please provide the requested information as soon as
possible and set the bug status as REPORTED. Due to regular bug
tracker maintenance, if the bug is still in NEEDSINFO status with
no change in 30 days the bug will be closed as RESOLVED > WORKSFORME
due to lack of needed information.

For more information about our bug triaging procedures please read the
wiki located here:
https://community.kde.org/Guidelines_and_HOWTOs/Bug_triaging

If you have already provided the requested information, please
mark the bug as REPORTED so that the KDE team knows that the bug is
ready to be confirmed.

Thank you for helping us make KDE software even better for everyone!

Comment 3 mike-harmon 2022-11-05 15:16:49 UTC

Hi, 

Checking again in 5.1.3, the loan editor still does not work correctly.  The behavior is similar, if not identical, to the original behavior when I reported the bug.

Have an existing loan account.
Try to edit the account in order to change the variable interest rate.  
Observe that it is not possible to have KMyMoney auto-calculate a new payment amount based on interest rate, balance, and remaining term.  Despite the wizard text that indicates any of the parameters should be auto-calculated if the others are provided, the user is forced to enter the new P+I payment amount and interest rate, and KMyMoney then calculates a new term based on a re-amortization from inception.

Comment 4 Thomas Baumgart 2023-11-11 16:33:27 UTC

*** Bug 476845 has been marked as a duplicate of this bug. ***