Skip, Pickup, and Irregular Payment Loans

At times, people in certain seasonal professions (such as teachers and farmers) may need to skip payments scheduled for a given selection of months. As an example, if a teacher is not paid in July, August and September, then it might be helpful if the individual could skip payments scheduled during those months.

Similarly, if a borrower knows that they receive an annual bonus of $1,000 at the end of December, then she may want to either pay an extra $1,000 dollars (or perhaps fix the payment at $1,000) for January.

The above two situations are what we call loans with skipped, pickup, or irregular payment schedules. A skipped payment can be either a payment of zero, or an interest only payment. An irregular payment is a payment specified by the borrower, in its entirety or treated as the specified principal portion of the payment. A pickup payment is a payment which exceeds the computed regular payment by a given amount. With the SCE, you may compute either skipped and pickup payment loans, or skipped and irregular payment loans. To clarify, you can not compute a loan with skipped, pickup, and irregular payments in the same payment stream using the Irregular module.

Sample Request

The following example is a request for an irregular payment loan with proceeds of $10,000, interest will accrue at a 5.5% rate using an actual day / 365 U. S. Rule accrual method (accrual code 320). There will be 60 monthly payments, with skipped payments in June, July, and August.

{
  "Module": "Irregular",
  "Data": {
    "LoanDate": "2022-08-25",
    "PmtDate": "2022-10-01",
    "IntRate": "5.500",
    "Proceeds": "10000.00",
    "Term": "60",
    "IrregType": "Irregular",
    "IrregPmts": [
      {
        "Month": "6",
        "Year": "0",
        "Payment": "0.00"
      },
      {
        "Month": "7",
        "Year": "0",
        "Payment": "0.00"
      },
      {
        "Month": "8",
        "Year": "0",
        "Payment": "0.00"
      }
    ],
    "Settings": {
      "AccrualCode": "320"
    }
  }
}

Sample Response

{
  "Result": 200,
  "Module": "Irregular",
  "Data": {
    "Errors": [],
    "Warnings": [],
    "Results": {
      "Payment": "253.55",
      "Number of Skips": "15",
      "Payments Specified": "15"
    },
    "FedBox": {
      "AmtFin": "10000.00",
      "FinChg": "1409.75",
      "TotPmts": "11409.75",
      "APR": {
        "Value": "5.491",
        "Type": "Actuarial"
      }
    },
    "Moneys": {
      "Principal": "10000.00",
      "Interest": "1409.75"
    },
    "Accrual": {
      "Method": "Actual/365 US Rule",
      "Days1Pmt": "37",
      "DayCount": "Actual",
      "Maturity": "2027-09-01"
    },
    "PmtStreams": [
      {
        "Term": "8",
        "Pmt": "253.55",
        "Rate": "5.500",
        "Begin": "2022-10-01"
      },
      {
        "Term": "9",
        "Pmt": "253.55",
        "Rate": "5.500",
        "Begin": "2023-09-01"
      },
      {
        "Term": "9",
        "Pmt": "253.55",
        "Rate": "5.500",
        "Begin": "2024-09-01"
      },
      {
        "Term": "9",
        "Pmt": "253.55",
        "Rate": "5.500",
        "Begin": "2025-09-01"
      },
      {
        "Term": "9",
        "Pmt": "253.55",
        "Rate": "5.500",
        "Begin": "2026-09-01"
      },
      {
        "Term": "1",
        "Pmt": "253.55",
        "Rate": "5.500",
        "Begin": "2027-09-01"
      }
    ],
    "AmTable": {
      "GrandTotals": {
        "PmtTot": "11409.75",
        "IntTot": "1409.52",
        "PrinTot": "10000.23"
      },
      "SubTotals": [
        {
          "Year": "2022",
          "Start": "1",
          "Events": "3",
          "PmtSub": "760.65",
          "IntSub": "144.91",
          "PrinSub": "615.74"
        },
        {
          "Year": "2023",
          "Start": "4",
          "Events": "12",
          "PmtSub": "2281.95",
          "IntSub": "467.93",
          "PrinSub": "1814.02"
        },
        {
          "Year": "2024",
          "Start": "16",
          "Events": "12",
          "PmtSub": "2281.95",
          "IntSub": "366.97",
          "PrinSub": "1914.98"
        },
        {
          "Year": "2025",
          "Start": "28",
          "Events": "12",
          "PmtSub": "2281.95",
          "IntSub": "258.10",
          "PrinSub": "2023.85"
        },
        {
          "Year": "2026",
          "Start": "40",
          "Events": "12",
          "PmtSub": "2281.95",
          "IntSub": "144.21",
          "PrinSub": "2137.74"
        },
        {
          "Year": "2027",
          "Start": "52",
          "Events": "9",
          "PmtSub": "1521.30",
          "IntSub": "27.40",
          "PrinSub": "1493.90"
        }
      ],
      "AmLines": [
        {
          "Idx": "1",
          "Date": "2022-10-01",
          "BegBal": "10000.00",
          "Pmt": "253.55",
          "Int": "55.75",
          "Prin": "197.80",
          "EndBal": "9802.20"
        },
        ...,
        {
          "Idx": "9",
          "Date": "2023-06-01",
          "BegBal": "8320.47",
          "Pmt": "0.00",
          "Int": "0.00",
          "Prin": "0.00",
          "UnpaidInt": "38.8669",
          "EndBal": "8320.47"
        },
        {
          "Idx": "10",
          "Date": "2023-07-01",
          "BegBal": "8320.47",
          "Pmt": "0.00",
          "Int": "0.00",
          "Prin": "0.00",
          "UnpaidInt": "76.4799",
          "EndBal": "8320.47"
        },
        {
          "Idx": "11",
          "Date": "2023-08-01",
          "BegBal": "8320.47",
          "Pmt": "0.00",
          "Int": "0.00",
          "Prin": "0.00",
          "UnpaidInt": "115.3468",
          "EndBal": "8320.47"
        },
        {
          "Idx": "12",
          "Date": "2023-09-01",
          "BegBal": "8320.47",
          "Pmt": "253.55",
          "Int": "154.21",
          "Prin": "99.34",
          "EndBal": "8221.13"
        },
        ...,
        {
          "Idx": "60",
          "Date": "2027-09-01",
          "BegBal": "248.71",
          "Pmt": "253.55",
          "Int": "4.61",
          "Prin": "248.94",
          "EndBal": "-0.23"
        }
      ]
    }
  }
}