Skipped 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, a borrower may also want to define a fixed payment of a specified amount at some time during the loan.

The above two situations are what we call loans with skipped and irregular payment schedules. A skipped payment may be defined as a payment of zero or an interest only payment. An irregular payment may be defined as a payment amount specified by the borrower in its entirety or a specified principal amount for the payment in question, to which interest is added.

Sample Request

The example below skips the summer months of June, July and August and plans for an irregular specified payment of $2,000 to be made in the month of December.

<inSKIPS_IRREGULARS AccrualCode="320">
   <LoanDate>2023-12-01</LoanDate>
   <PmtDate>2024-01-01</PmtDate>
   <IntRate>10</IntRate>
   <Proceeds>10000.00</Proceeds>
   <Term>12</Term>

   <!--Skip June, July, and August payments -->
   <IrregPmt Month="6" />
   <IrregPmt Month="7" />
   <IrregPmt Month="8" />

   <!--Specify an irregular payment of $2,000 in December of 2024 -->
   <IrregPmt Month="12" Year="2024" Payment="2000.00" />
</inSKIPS_IRREGULARS>

Notice that all that's required to skip a payment is to include it as an <IrregPmt> without a Payment attribute (or set the value of this attribute to 0).

Sample Response

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

<?xml version="1.0" standalone="no" ?>
<!DOCTYPE outSKIPS_IRREGULARS SYSTEM "outSKIPS_IRREGULARS.dtd">
<outSKIPS_IRREGULARS>
   <Results>
      <Description>Successful Calculation</Description>
      <Payment>1072.13</Payment>
      <Number_of_Skips>3</Number_of_Skips>
      <Payments_Specified>4</Payments_Specified>
   </Results>
   <FedBox>
      <AmtFin>10000.00</AmtFin>
      <FinChg>577.04</FinChg>
      <TotPmts>10577.04</TotPmts>
      <RegZAPR Type="Actuarial">9.999</RegZAPR>
   </FedBox>
   <Moneys>
      <Principal>10000.00</Principal>
      <Interest>577.04</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>2024-12-01</Maturity>
   </Accrual>
   <PmtStream Term="5" Pmt="1072.13" Rate="10.000" Begin="2024-01-01"/>
   <PmtStream Term="3" Pmt="1072.13" Rate="10.000" Begin="2024-09-01"/>
   <PmtStream Term="1" Pmt="2000.00" Rate="10.000" Begin="2024-12-01"/>
   <AmTable>
      <GrandTotals PmtTot="10577.04" IntTot="577.06" PrinTot="9999.98"/>
      <SubTotals Year="2024" Start="1" Events="12" PmtSub="10577.04" IntSub="577.06" PrinSub="9999.98"/>
      <AmLine Idx="1" Date="2024-01-01" BegBal="10000.00" Pmt="1072.13" Int="84.93" Prin="987.20" EndBal="9012.80"/>
      <AmLine Idx="2" Date="2024-02-01" BegBal="9012.80" Pmt="1072.13" Int="76.55" Prin="995.58" EndBal="8017.22"/>
      <AmLine Idx="3" Date="2024-03-01" BegBal="8017.22" Pmt="1072.13" Int="63.70" Prin="1008.43" EndBal="7008.79"/>
      <AmLine Idx="4" Date="2024-04-01" BegBal="7008.79" Pmt="1072.13" Int="59.53" Prin="1012.60" EndBal="5996.19"/>
      <AmLine Idx="5" Date="2024-05-01" BegBal="5996.19" Pmt="1072.13" Int="49.28" Prin="1022.85" EndBal="4973.34"/>
      <AmLine Idx="6" Date="2024-06-01" BegBal="4973.34" Pmt="0.00" Int="0.00" Prin="0.00" UnpaidInt="42.2393" EndBal="4973.34"/>
      <AmLine Idx="7" Date="2024-07-01" BegBal="4973.34" Pmt="0.00" Int="0.00" Prin="0.00" UnpaidInt="83.1161" EndBal="4973.34"/>
      <AmLine Idx="8" Date="2024-08-01" BegBal="4973.34" Pmt="0.00" Int="0.00" Prin="0.00" UnpaidInt="125.3554" EndBal="4973.34"/>
      <AmLine Idx="9" Date="2024-09-01" BegBal="4973.34" Pmt="1072.13" Int="167.59" Prin="904.54" EndBal="4068.80"/>
      <AmLine Idx="10" Date="2024-10-01" BegBal="4068.80" Pmt="1072.13" Int="33.44" Prin="1038.69" EndBal="3030.11"/>
      <AmLine Idx="11" Date="2024-11-01" BegBal="3030.11" Pmt="1072.13" Int="25.74" Prin="1046.39" EndBal="1983.72"/>
      <AmLine Idx="12" Date="2024-12-01" BegBal="1983.72" Pmt="2000.00" Int="16.30" Prin="1983.70" EndBal="0.02"/>
   </AmTable>
</outSKIPS_IRREGULARS>