We have an fixed auto loan that is set to mature June 2012 (basically a year from now). We DO NOT get penalties for paying it off yearly. So have been making payments larger then owed. I've payed so much that they only want from us $26 a month for the last several months, but each month I've been giving them $200. ($200 was the original monthly payment--I just was able to pay more and have greatly reduce the amount due so today I can pay $200 and still be able to have it paid off early).
The one thing I've noticed is even though it's the same amount due every month ($26) the interest they are requiring has gone up the last several months instead of down. For example The interest due this month is $1 more then last month. Over all I'm still doing good and will have my loan paid off early. I'm just confused why the interest due has gone up vs. down. The loan is fixed. So they are not raising the interest rate, just raising the interest due.
I thought with fix loans the interest due goes down as the loan gets closer to maturity date.
Asked by Anonymous at 4:09 PM on Jun. 8, 2011 in Money & Work
Answer by KateDinVA at 4:18 PM on Jun. 8, 2011
Answer by yourspecialkid at 4:13 PM on Jun. 8, 2011
Answer by dolphincjc at 4:58 PM on Jun. 8, 2011
Answer by tasches at 6:37 PM on Jun. 8, 2011