Principal Pre-Payments

Early loan payoff through principal pre-payments.

This payment feature enables Borrowers to make payments allocated towards the principal from the last remaining amortization cycle.

  • Note: The upcoming minimum payment obligation will be preserved i.e. not changed.

The flexibility of this payment enables Borrowers to target the loan principal that can ultimately reduce the interest or fees (otherwise) paid during the loan lifecycle. This feature is commonly used in mortgages and excess cash flow payments for commercial borrowers to free up cash and accelerate payoff.

This feature uses the allocation and allocation_line_item_id parameters in the payment_record call to designate the principal payment bucket and the loan to be paid down enabling further flexibility to specify the loan on an account with multiple loans.

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API: Post Payment Record