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"
        }
      ]
    }
  }
}