Interest Only Loans

This type of loan minimizes payment amounts such that the all payments (except for the final) only cover accrued interest. Since interest may vary by the number of days in a period (depending upon the interest accrual calendar used), interest payments may vary.

Sample Request

The following sample illustrates the core structure of an interest only loan request. It is a request for a loan with a single advance of $10,000, accruing interest at 6.5%, with a 5 monthly interest only payments followed by a final payment which pays off all principal and interest.

<inINTEREST_ONLY AccrualCode="320">
   <LoanDate>2024-12-01</LoanDate>
   <PmtDate>2025-01-01</PmtDate>
   <IntRate>6.5</IntRate>
   <Proceeds>10000.00</Proceeds>
   <Term>6</Term>
</inINTEREST_ONLY>   

Sample Response

The following response is returned from the SCEX when provided with the sample request above.

<?xml version="1.0" standalone="no" ?>
<!DOCTYPE outINTEREST_ONLY SYSTEM "outINTEREST_ONLY.dtd">
<outINTEREST_ONLY>
   <Results>
      <Description>Successful Calculation</Description>
      <First>55.21</First>
      <Final>10055.21</Final>
   </Results>
   <FedBox>
      <AmtFin>10000.00</AmtFin>
      <FinChg>324.12</FinChg>
      <TotPmts>10324.12</TotPmts>
      <RegZAPR Type="Actuarial">6.482</RegZAPR>
   </FedBox>
   <Moneys>
      <Principal>10000.00</Principal>
      <Interest>324.12</Interest>
      <Protection Category="None" PerPmt="0.00" PerDay="0.00">0.00</Protection>
   </Moneys>
   <Accrual>
      <Method>Actual/365 US Rule</Method>
      <Days1Pmt DayCount="Actual">31</Days1Pmt>
      <Maturity>2025-06-01</Maturity>
   </Accrual>
   <PmtStream Term="2" Pmt="55.21" Rate="6.500" Begin="2025-01-01"/>
   <PmtStream Term="1" Pmt="49.86" Rate="6.500" Begin="2025-03-01"/>
   <PmtStream Term="1" Pmt="55.21" Rate="6.500" Begin="2025-04-01"/>
   <PmtStream Term="1" Pmt="53.42" Rate="6.500" Begin="2025-05-01"/>
   <PmtStream Term="1" Pmt="10055.21" Rate="6.500" Begin="2025-06-01"/>
   <AmTable>
      <GrandTotals PmtTot="10324.12" IntTot="324.12" PrinTot="10000.00"/>
      <SubTotals Year="2025" Start="1" Events="6" PmtSub="10324.12" IntSub="324.12" PrinSub="10000.00"/>
      <AmLine Idx="1" Date="2025-01-01" BegBal="10000.00" Pmt="55.21" Int="55.21" Prin="0.00" EndBal="10000.00"/>
      <AmLine Idx="2" Date="2025-02-01" BegBal="10000.00" Pmt="55.21" Int="55.21" Prin="0.00" EndBal="10000.00"/>
      <AmLine Idx="3" Date="2025-03-01" BegBal="10000.00" Pmt="49.86" Int="49.86" Prin="0.00" EndBal="10000.00"/>
      <AmLine Idx="4" Date="2025-04-01" BegBal="10000.00" Pmt="55.21" Int="55.21" Prin="0.00" EndBal="10000.00"/>
      <AmLine Idx="5" Date="2025-05-01" BegBal="10000.00" Pmt="53.42" Int="53.42" Prin="0.00" EndBal="10000.00"/>
      <AmLine Idx="6" Date="2025-06-01" BegBal="10000.00" Pmt="10055.21" Int="55.21" Prin="10000.00" EndBal="0.00"/>
   </AmTable>
</outINTEREST_ONLY>