if i get a loan for 5000 with a reeking interest rate of 19% which then makes it about 5950 i owe total thanks to the interest rate. making my monthly payments 129.70
BUT if i then turn around and pay back 2000 of the 5000 originally owed (since i dont need the whole 5000 but thats the minimum for this type of a loan) will my interest rate STAY 19% for the remaining 3950 that i will owe? and once im down to the 3950 that i owe-what will my monthly payment be at now at this time?
thanks for any help.
2007-11-16 07:24:19 · 2 answers · asked by kburgess612 1 in Business & Finance ➔ Credit
You interest rate will stay the same. Your monthly payment will be the same but your number of payments will not be as long. But be sure to read ALL the enclosures that are given to you when you open the loan.
If I were you I would shop around for loans, 19% is fairly high for a loan.
2007-11-16 07:34:27 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you have a fixed rate loan, the payments will not change until the very last one. It's unlikely that your loan amount can be divided evenly, that's why the last one is different.
If you have a variable rate, the amount of interest is based on the balance at the time the payment is due, so in that case it would go down when a lot of the principal is paid.
You should have some kind of loan documents that will tell you what kind of loan you have.
2007-11-16 16:15:38 · answer #2 · answered by Debdeb 7 · 0⤊ 0⤋