How many years my loan will be reduced by if?

Question

I borrow £32500 over 11 years and i pay £357.5 , and i decide at the end of each year to give an additionnal £2500.

Answer 1

if you are paying back 357,50 per calendar month you are paying 47190 in all which is 14690 interest. This is 45.2% over 11 years or 4.1090 per annum. Your interest on the first month is 110, second month 109 etc etc (I am leaving off the pennies.)

If you pay 2500 EXTRA ie 2867.50 on the 12 th month of every year your payments will finish on month 68 witn a payment of 232.34, having paid 3882.136 interest.

Answer 2

forget the " apr ".... that only comes into effect if you do NOT pay anything back for 12 months !! the " apr " is the maximnum they can charge you if you default !!..... you will be much better off by paying the extra £2,500 weekly ( £48.07) as all banks and finance houses calculate the interest on a daily basis and NOT monthil or annually like most people think !!... by paying small chunks off weekly by standing order you will save on the compound interest accumulated daily on the balance remaining... therefore reducing the term of the loan dramatically therefor savimg you a fortune in interest !!!!.....the banks will never openly tell you this BUT i know !!! I work in finance ....good luck ..

Answer 3

total amount you are paying for loan is £47124.

one yrs total money would be £6784. this includes the £2500 extra.
total payment if you work out 357x12x11 means you whole loan repayment is £47124 devide by the yearly amount paid is 6.9 so it will take just less than 7 yrs so you will be 4 years early.

Answer 4

Would need to know what your APR is to work that out.

Also, worth checking your paperwork because some loan providers charge for overpayments and early settlement fees.

Answer 5

Quite a lot sweet face, but that is one bloody good interest rate you got there, clever girl.

Answer 6

look at the agreement before signing