is the interest applied to the total loan or the monthly payment? whats good and why?
2006-06-27 05:58:30 · 8 answers · asked by portlandsammyo 1 in Business & Finance ➔ Personal Finance
it is applied to the total loan, or the "total amount financied". a fixed rate means the rate stays the same amount throughout the entire life of the loan and will never change. a variable rate can change to a different amount at will, dependent on the loaner.
2006-06-27 06:03:34 · answer #1 · answered by scoobysnack 2 · 0⤊ 0⤋
Here you can compare different options
RE What is a fixed interest rate on an auto loan?
is the interest applied to the total loan or the monthly payment? whats good and why?
2014-09-12 19:56:50 · answer #2 · answered by Dody 1 · 0⤊ 0⤋
1
2016-09-28 13:37:12 · answer #3 · answered by ? 3 · 0⤊ 0⤋
FIXED is always best. Meaning it will never increase during the term of loan.
The interest is usually calculated on the balance of the principal, each month, based on the fractional percent of a 12 month interest rate.. As you pay the interest each month, the remainder of your payment is applied to the principal. Can you see a benefit of being able to pay an additional amount each month? That would reduce your principal each month, reducing the interest each month. You should request this option, but it may not be available to you. Ask. That practice would pay off your loan sooner than the original term.
2006-06-27 06:10:13 · answer #4 · answered by ed 7 · 0⤊ 0⤋
A fixed rate on an auto loan means that the rate you pay will never move. The total payoff will allways be the same.
2006-06-27 06:02:52 · answer #5 · answered by rebbecca k 1 · 0⤊ 0⤋
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2014-12-29 08:43:05 · answer #6 · answered by ? 1 · 0⤊ 0⤋
check a few sites online
2006-06-27 06:50:43 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Try https://tr.im/1j8nU
2016-07-23 01:59:35 · answer #8 · answered by Lynn 6 · 0⤊ 0⤋
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2015-04-23 12:37:52 · answer #9 · answered by ? 1 · 0⤊ 0⤋