Review the descriptions below to help you choose a specific payment structure.
n Borrower information helps determine available payment structures. Some payment structures only apply to consumer loans and some payment structures only apply to commercial loans.
n Loan Definition information helps determine available payment structures.
n The payment structure selected on the first Calculations windows determines options on subsequent windows.
– Example: Only a funding date and maturity date are needed for a Line of Credit—Single Pay loan. The system calculates the interest, adds it to the principal, and displays the single payment amount.
– Example: The number of payments, the first payment, and funding date are needed for a Line of Credit—Interest-Only loan. The system calculates the last payment.
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Payment Structure |
Description |
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Balloon |
§ Amortized term greater than maturity § For any loan type § Allows for collection of odd days interest |
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Balloon Mortgage |
§ Amortized term greater than maturity § For secured, real estate loan types only § For fixed interest, 30/360 period § Allows for collection of odd days interest |
|
Fully Amortized |
§ Equal periodic payments to reduce balance and payoff at maturity § For any loan type other than a line of credit § Allows for collection of odd days interest |
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Inhouse Balloon Mortgage |
§ Amortized term greater than maturity § For secured, real estate loan types only § Allows for collection of odd days interest |
|
Inhouse Mortgage |
§ Equal periodic payments to reduce balance and payoff at maturity § For real estate loan types § Always calculates odd days interest |
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Interest Only |
§ Periodic payment of accrued interest only § For any loan types § Allows for collection of odd days interest |
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Interest Only Construction |
§ Periodic payment of accrued interest only § For construction loan types § Calculates finance charge at 50% |
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Interest Only Line of Credit (LOC) |
§ Periodic payment of accrued interest only § For business line of credit (closed) loan types § An interest only, line of credit loan with single pay can only be used for a personal, closed-end line of credit |
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Irregular |
§ Series of different payment streams § For any loan type |
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Level Principal Reduction |
§ Equal periodic payments of level principal amounts plus accrued interest and payoff at maturity § For any loan type |
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Mixed Principal and Interest |
§ Allows for differing payment frequencies of principal and interest § For any loan type § Allows for collection of odd days interest |
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Mortgage |
§ Equal periodic payments to reduce balance and pay off at maturity § For real estate loan types § For 30/360 period § Always allows for odd days interest |
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Open End Line of Credit |
§ Allows for defining payment number, frequency, and composition (Example: interest only) § For construction of business line of credit loan types § No calculations |
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Single Payment |
§ 1 payment of principal and interest due at maturity § An interest only, line of credit with single pay can only be used for a personal, closed-end line of credit |
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Single Payment Construction |
§ 1 payment of principal and interest due at maturity § For construction loans |
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Unstructured |
§ Custom repayment is entered as text with no calculations § For business term loans |