There are many different loan types. Each one differs based on how interest is collected and/or how payments are made. This chapter will explain each of the loan types.

The past few examples that we dealt with, all involved loans that fit the

"REGULAR" loan type definition.

The Regular Loan type is the most common financing method available, it stipulates that interest and principal are blended and amortized over the amortization period. The payment amount includes both interest portion and principal portion.

Over the course of the amortization period, the interest portion lessens and

the principal portion increases and eventually the entire principal plus interest is paid off.

Based on this standard mathematical setup, there are numerous deviations and alternatives. Each one of these other loan types has been given a special name.

WinAmort Pro can compute seven of the most common types of

loans, including Regular.

This field is available in most of the forms. Starting with the Fixed Rate Form.

 
To select a different loan type from the default “NORMAL” type :

Click the down arrow key beside the LOAN TYPE field. the drop down menu will show the following choices.

In each of the different forms and every time the Loan Type field pop-down list is accessed, you will see the following list or a partial list when all of the

options are not applicable.

Each of the items in the pull down menu will be explained in the following

pages, in the order that they are listed, starting with Rule of 78 loan type.

Note: Depending on the form you are using, the Loan Type field will only offer

the different types of loan options possible.

Goto: RULE OF 78