What are Payment Factors?

Payment factors are values that allow us to calculate a loan's monthly payments before and after ITC paydowns. These are provided by lenders and the factors can vary by product, term, and APR. These factors usually take into account lender specific criteria, amortization, and ITC paydown.
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When a lender is non-integrated (i.e. we do not pull quotes from APIs) or a lender integration is disabled, DevOps needs to add payment factors into our DB so that we can calculate the estimated monthly payments displayed on our Pricing Page. Remember, Enerflo currently only has 5 integrated lenders, which means, for most other lenders, we are calculating monthly payments using payment factors (Note: There are other non-integrated lenders that don't use payment factors).
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If a partner requests to add a new lender that has payment factors, the partner will need to initiate discussions with their lender rep to get these payment factors.
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To calculate monthly payments using payment factors, simply multiply the financed amount by the payment factor.

Here is an example:

Payment Factors for Mosaic PowerSwitch Choice, 1.49%, 25yr:
First 18 Months: 0.2998%
Post Month 18 with ITC paydown: 0.2998%
Post Month 18 without ITC paydown: 0.4086%
Gross System Cost: $45,000

NOTE: Sometimes lenders will provide payment factors not in % format, so there will be additional decimal places. For example, you could see a payment factor represented as 0.002998. So just be aware of the presence of a "%" and calculate accordingly.

Refer to this Google sheet for Mosaic PowerSwitch Choice Payment Factors. The second tab has a simple calculator that demonstrates how payments can change using the 25 year term product and various APRs.
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**This guru card is a work in progress. Hopefully, we can have all lender payment factors linked to this card with a spreadsheet that users can use to calculate and understand monthly payments.