(800) 234-1111

FINPACK News

What’s the Frequency?

by | Oct 19, 2018

What's the Frequency?Recently, there was a FINPACK News article on the basic functions of the FINPACK Loan Calculator.  This article goes in-depth on what the ‘Payment Frequency’ of the calculator means (i.e. the frequency of Annual payments, Monthly payments, etc.). Currently, the loan calculator payment frequency choices are Annual, Bi-monthly, Bi-weekly, Monthly, Quarterly, Semi-annual, Semi-monthly, and Weekly.

FINPACK Payment Frequencies

FINPACK uses the following logic behind the payment frequency calculations within the loan calculator tool.

  • Annual – one payment a year. The payment distribution is a ‘1’ in the month designated as the payment date for each year of the loan.
  • Bi-monthly – payments occurring every other month.  For FINPACK purposes, the payments are every other month.  The payment distribution is a ‘1’ every other month for the life of the loan, starting with the first payment date.
  • Bi-weekly – payments occurring every other week. For FINPACK purposes, there is a continuous cycle of two payments every month for five straight months, then a month of 3 payments.  (This is to ensure 26 payments for the year; the first payment month actually has an extra payment so as to ‘prime the pump’ for the loan). The payment distribution will appear as a ‘3’ in the first month, a ‘2’ for the next 4 months, then for every 6 months during the life of the loan, you will see a ‘3’ and five straight ‘2’s.
  • Monthly – payments occurring once a month. The payment distribution is a ‘1’ in every month for the life of the loan.
  • Quarterly – payments occurring every three months equaling four payments a year. The payment distribution is a ‘1’ in the first payment month and a ‘1’ every three months for the life of the loan.
  • Semi-annual – payments occurring twice a year. The payment distribution is a ‘1 in the first payment month and a ‘1’ every 6 months for the life of the loan.
  • Semi-monthly – payments occurring twice a month. The payment distribution is a ‘2’ in every month for the life of the loan.
  • Weekly – payments occurring once a week. The payment distribution is a ‘5’ in the first payment month, then a continuous cycle of two months of ‘4’s and a month of ‘5’ for the life of the loan. Depending on when the loan started in the year, FINPACK ensures that the correct number of payments are made for a year shorter than 52 weeks.
Latest News
2022 FINPACK Lenders Conference

2022 FINPACK Lenders Conference

The 2022 FINPACK Lenders Conference will be held in-person in 2022. Conference Information Date: December 13-14, 2022Location: Radisson Blu Mall of America - Bloomington, MN Dr. David Kohl returns to the FINPACK Lenders Conference + a full lineup of speakers. We will...

FINPACK Digest – June 2022

FINPACK Digest – June 2022

Credit scorecards, the FINPACK advanced training survey, register now for Lender training, and The FINPACK digest is published every month and links to all the FINPACK News post published in the previous four weeks. Want notifications on FINPACK news posts sooner?...

Training & Events Update

Training & Events Update

October training for Lenders, Training for Educators and Professionals, and save the date for the 2022 FINPACK Lender's Conference FINPACK Training for Lenders in October Registration is open for the next FINPACK Lender training on October 11th and 12th on the...

How to Design and Use Credit Decision Scorecards

How to Design and Use Credit Decision Scorecards

Using Credit Decision Scorecards in your credit decisioning represents a convenient way to 'filter' loan applications. By applying some basic criteria, you can quickly decide if a credit request is straightforward and can be approved or denied as is, or if it needs...