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Author Topic: Loan Payments (not another 'getting a new loan thread' )  (Read 652 times)


  • Former member
Loan Payments (not another 'getting a new loan thread' )
« on: June 10, 2010, 02:49:40 PM »

Noticed a weird thing. Obvs, making the weekly payments and the loan is being whittled away bit by bit (yay). Except, I've been noticing that my principal payments are going up - ever so slightly - even as my interest payments are going down.

Anyone know why this is. I would expect, if anything, principal payments to stay constant while the additional interest payment on top would fluctuate. And yes, I checked interest rates - principal payments have been rising (again, really really slightly) even as the interest rates and interest payments have stayed the same or fallen.



  • Former member
Re: Loan Payments (not another 'getting a new loan thread' )
« Reply #1 on: June 10, 2010, 04:17:19 PM »
Your total payment should remain about the same. This is normal loan amortization (just like in the real world). The interest is based on your outstanding principle, so as you pay down the loan your interest goes down. As the portion of your payment related to interest goes down the portion related to principle goes up. Just like a home mortgage, you pay most of the interest up front and more principle in the later years of the loan.


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