Introduction
Payment frequency settings allow lenders to offer flexible repayment schedules, including weekly, bi-weekly, monthly, semi-monthly, and quarterly payments. Setting the correct frequency ensures accurate loan amortization and aligns payments with borrower income schedules.
Navigating to This Section
1. Click the Gear icon in the top-right corner to open Settings.
2. Select Company Settings.
3. Use the left-hand navigation menu to find and expand Loan Setup/Origination.
4. Locate Payment Method & Calculations.
Tip: If you cannot access Payment Method & Calculations, ensure you have the necessary permissions or check with your administrator.
Payment Frequency
Enable All Borrower Payment Frequencies
Allows selection of different payment schedules for borrowers:
Weekly
Bi-Weekly
Monthly (Default if setting is OFF)
Semi-Monthly
Quarterly
Semi-Monthly Paydays
Determines the specific dates for semi-monthly payments:
Option | Description |
1st and 16th of the Month (1st and 15th in February) | Payments occur on the 1st and 16th of the month (or 1st and 15th in February). If a borrower's payday falls on the 2nd, payments will be scheduled on the 2nd and 17th of the month (2nd and 16th in February). |
1st and 15th of the Month | Payments are scheduled on the 1st and 15th of each month. If a borrower's payday falls on the 2nd, payments will be on the 2nd and 16th of each month. |
Best Practice: Align payment frequency with borrower income schedules to minimize late payments and improve repayment consistency.
FAQs
What happens if I don’t enable all payment frequencies?
If this setting is OFF, all loans default to Monthly payments, and borrowers will not have flexible scheduling options.
Can I change payment frequency after loan origination?
Yes, but changes may impact interest calculations and require recalculations of amortization schedules.
Which semi-monthly option should I choose?
Choose 1st and 16th (1st and 15th in February) if you prefer alignment with standard business payment cycles. The 1st and 15th option provides consistency without adjustments for February.
Need Further Assistance?
For additional support, contact us:
📧 Email: support@mortgageautomator.com
💬 Live Chat: Click the question icon at the top-right corner of your screen.