Loan Modeling

Select Loan Amount

To specify the maximum loan on the account, click the box next to the maximum loan amount. To specify a different amount, enter the loan amount, or specify a desired loan amount and the desired repayment term. The loan amount you specify may be based on the maximum loan amount provided to you, a specified loan amount (not to exceed the maximum loan amount) or a desired repayment amount.
Indicate if the loan is a general purpose loan or a mortgage.
Specify the desired repayment method (can be changed if available).
Specify the desired repayment frequency (can be changed if available).
Click on “Model Loan” to display the specifics of the loan that you are requesting.

Results Section

Detailed Information regarding the loan (repayment amount, repayment term, interest rate, etc…) will be displayed.
To see how the payments will be credited based on principal and interest, click on "View Amortization Schedule" bar.
Once you are ready to proceed, click on "Continue". You can always change the loan information by clicking on "Change".

Loan Modeling Terms

Maximum Loan Amount – Displays the maximum loan possible on the account. The calculation is based upon regulatory guidelines that govern which accounts can be used in the calculation and what percentage of the value of the account can be borrowed. The amount quoted is based on the assumption that you are 100% vested in the employer’s funds. If required by your employer, this amount will need to be verified and may change the amount available to borrow.
Minimum Loan Amount – The minimum loan amount established by Corebridge Retirement Services is $1,000. Your employer may further limit the loan amount available to you.
Other Accounts Where Loans May Be Available – This is a list of other accounts from which a loan may be taken. To determine the amount of loan available on another account, click on the account number.
Specify Desired Loan Amount – The loan amount could be modeled based on the maximum amount, a specified amount or a specified repayment amount. The amount requested can never exceed the maximum or go below the minimum loan amount.
Specify Desired Repayment Term – Refers to the length of time you wish to take the loan. A loan term can be from one to five years and must be requested in whole year increments.You may be able to extend this time up to 10 years for loans under annuity products and up to 15 years for loans under mutual fund products only if you are using the money to purchase a principal residence for yourself.
Model Loan Button – Once the amount requested and the term of the loan is entered, click on this button to calculate the specifics of the loan.
Reset Button – Allows the user to reset the loan amount requested and the term of the loan. Functions as an eraser if a change is desired.

Requested Loan Amount

Reports the actual amount of the loan as specified by entries made during the modeling of the loan. For loans under annuity products, the actual loan proceeds may be less, as interest and/or surrender escrow is additionally required to be withheld for the loan.

Repayment Term

Reports the repayment term that is generally one to five years; you may be able to take a loan for more than five years if you are using the loan to purchase a principal residence for yourself.

Interest Rate – Reports the interest rate of the loan based on the type of loan selected according to your plan provisions. If your loan is under an annuity product, the interest rate is based on the type of loan allowed by your plan (ERISA vs. non-ERISA). If the loan is based on non-ERISA rules, the loan interest rate will be up to 3% above the minimum guaranteed interest rate as defined in your contract. If the loan is based on ERISA rules, the interest rate is declared on a quarterly basis and is based on Moody’s Corporate Bond Yield Average.

If your loan is under a mutual fund product, the interest rate is based on the Prime Rate plus an additional percentage defined by your plan. Please refer to your employer's plan for more information.

Payment Amount – Reports the amount of the payment based on the frequency repaid.

Security Amount – Reports the amount of the loan, any applicable contract surrender charges, and the portion of the loan interest due with a quarterly payment. This amount will be removed from the annuity value and placed in an escrow account as security for the loan. As the loan is repaid, the principal payment amount will be returned to your annuity value. Note: Only applicable to loans on annuity products.

Escrow Amount – Reports the amount of the loan, any applicable contract surrender charges, and the portion of the loan interest due with a quarterly payment. This amount will be removed from the annuity value and placed in an escrow account as security for the loan. As the loan is repaid, the principal payment amount will be returned to your annuity value. Note: Only applicable to loans on annuity products.

Loan Fees – There may be fees charged for your loan. For loans on annuity products, there is a loan application fee of up to $75.00 that will be deducted from the total loan proceeds but is still considered part of the loan amount. This fee may not be applicable in certain states. For loans on mutual fund products, the plan may assess a loan initiation fee and an annual loan maintenance fee charged to the borrower’s account. Please refer to your employer’s plan for more information.

Net Loan Amount – Refers to the amount you receive after applicable fees are deducted from the amount financed.

View Amortization Schedule – Will display the Amortization Schedule which reports approximately how the loan payments would be applied to principal and interest. Also, it provides the loan balance. The amounts are calculated based upon repayments being received in the same amount and received on the same due date. This calculation is an effort to provide you with an approximate repayment of the loan. This repayment amount is not guaranteed, as the exact amount will depend on the date the repayment is processed.

Transfer Between Funds – Changes existing fund balances, but would NOT change how future contributions are invested. A transfer between funds may be required if sufficient funds are not invested in a loanable fund to secure the loan amount.

Banking Information – If banking information is on file, you can choose to use an existing bank account or add a new bank account. If banking information is not on file or if adding a new bank account, enter account type (checking or savings), bank routing number, and account number. When bank routing number is entered the bank name, bank address, bank city state and zip will be displayed on the right side of the screen. To view a sample which illustrates location of an ABA routing number and account number, click on the "Click here to view a sample".

Loan Proceeds – Two delivery options are available. Proceeds can be deposited into your bank account or a check can be sent via United States Postal Service or express mail. There is a $25 credit card charge for express mail.

Electronic Transfers "To" Your Bank – This agreement is for money being deposited into your bank account. Read agreement and click agreement check box to indicate you have read and understand the banking terms and conditions and you agree to the terms listed in the agreement. You must click the agreement check box for the Next button to become active.

Loan Repayment – Repayment options available are based on your plan. If available, your options are ACH and/or Payroll Deduction.

ACH – Loan payment will be deducted from your bank account. If your loan proceeds will be deposited into your bank account, you may choose to repay the loan from the same bank account, repay from another existing bank account or add another bank account to use for repayment. If your loan proceeds will be delivered by check, you can choose an existing bank account or add a new bank account to repay the loan.

Payroll Deduction – Loan payment will be deducted from your paycheck per your pay frequency (Weekly, Bi-Weekly, Monthly or Semi-Monthly).

Electronic Transfers "From" Your Bank – This agreement is for money being transferred from your bank account. Read agreement and click check box to indicate you have read and understand the banking terms and conditions and you agree to the terms listed in the agreement. You must click the agreement check box for the Next button to become active.