I've been paying the same amount by the due date each month for the past six months... and now I' figured out the principal that was paid each month, and it varies! =( I didn't think this was supposed to happen with an installment loan.
Here is what the bank applied to principal every month:
pmt1 $157.54
pmt2 $101.16
pmt3 $ 0.00
pmt4 $ 12.97
pmt5 $159.07
I thought the amount applied to principal would start off small and slowly increase, while the interest would slowly decrease. What the heck!?!? Am I in bizarro world? =)
Please help!
-josh
2007-12-08 09:15:19 · 7 answers · asked by Josh in Beantown 2 in Business & Finance ➔ Credit
BTW... It's an installment loan from National City bank that is my second "mortgage".
2007-12-08 10:41:06 · update #1
And yes. I've called them twice. They are either really stupid and CAN'T or they are playing dumb and WON'T tell me what's up with this.
I don't like this one bit. =(
2007-12-08 10:47:54 · update #2
It sounds like the interest rate could be variable., You should ask the bank why the payments are not consistant and also if they are accruing interest and other finance charges.
Make sure you pay on time. Also, if possible divide your payments in half and pay the monthly payment but in two installments. This is suppossed to reduce your principle over time. See if your bank will allow the monthly installments.
2007-12-08 09:22:02 · answer #1 · answered by Jag J 2 · 0⤊ 0⤋
I agree with you. Is this like a home loan or a car loan? I mean if you are making new borrowings, then I could understand it. But if its like a car loan or home loan, then the amount applied to principal should go up slightly each month. I would definitely talk to the bank about this.
Is this one of those adjustable rate loans? If the rate was jumping around, that would make a difference.
2007-12-08 09:19:15 · answer #2 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
What kind of loan is it? It all depends on the type of loan. If it's a fixed rate, then the principal amount paid should go up slowly every month. If it's variable, it can, well, vary.
2007-12-08 09:17:31 · answer #3 · answered by I love my baby boy! 5 · 1⤊ 0⤋
it says * you have 14 days to put in the cancellation notice * you have to give the money back * if you pay it all back within ONE month of cancelling they will not charge you any interest or fees *if you did already pay interest or fees they have to return it fill up the form and return the money as soon as possible so there are no arguments you didn't do it in time WOW! where is this place? I've never heard of a place that lends money and charges no cancellation fees! what is it, a student union loan?
2016-05-22 05:17:43 · answer #4 · answered by tonya 3 · 0⤊ 0⤋
Yes that is odd. You are in bizzaro world. I would call the bank or lender to find out what is going on. Sounds very fishy.
2007-12-08 09:18:13 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Definitely weird. Call them.
2007-12-08 09:18:21 · answer #6 · answered by theadamone 2 · 0⤊ 0⤋
ask to pay the rears first.
2007-12-08 09:18:40 · answer #7 · answered by ? 7 · 0⤊ 0⤋