How do the Credit Types in LMS work?
Actual Payment – A standard type loan where interest decreases over the term and principal increases correspondingly keeping all payments the same except for the last one. The amount of interest is calculated based on the actual payment date.
Add On – With Payoff – The loan has a fixed interest and principal payment over the life of the loan. It is computed initially and divided by the number of terms; all set to the same principal and interest amount but allows an additional principal to pay off the loan early.
Add-On – The loan has a fixed interest and principal payment over the life of the loan. It is computed initially and divided by the number of terms; all set to the same principal and interest amount.
Custom – User types in the schedule of principal and interest.
End of Term – Interest only payments during the life of the loan with the principal due at the End of Term.
Fixed Principal Repayment -The user specifies the amount of principal to be paid each month (i.e. $2,000.00). Interest is calculated on the balance of the loan. The total payment varies each month because of the interest calculation.
Normal –The standard mortgage type loan where interest decreases over the term and principal increases correspondingly keeping all payments the same except for the last one.
Normal No Early Payoff –A mortgage type loan where interest decreases over the term and principal increases correspondingly keeping all payments the same except for the last one. Does not allow additional principal payments to pay off the loan early.
Special Add-On – The loan has a fixed principal over the life of the loan that includes the interest. It is computed initially and divided by the number of terms; all set to the same amount.