How to do an Interest Only loan

Tell Moneylender how to do calculations for you loans. Get the numbers to come out the way you want.
Post Reply
wtech_josh
Site Admin
Posts: 92
Joined: Tue Jul 30, 2019 7:17 pm

How to do an Interest Only loan

Post by wtech_josh »

The only different in the set up is that the regular payment is the Interest Only payment amount instead of the amortized payment amount. Literally everything else is the same.

When collecting the payments, you might choose to mark the payments as "Interest Only" instead of "Regular Payment" if you see a couple pennies paying down the principal. But if the borrower pays more than the interest that accrued, a Regular Payment will automatically pay down principal with whatever extra is being paid by the borrower.
Post Reply