... just to clarify this: The weekly loan payment is calculated using the current interest rate and not the rate, that we had, when I took the loan?
So, when the rate is going up, it's getting more expensive every week... right?
Yes, variable interest rate.
Also to clarify...the payment stays the same, correct?
So changes in interest rate really just changes the balance of interest to principle portions of the payment.
I ask because I have had several loans get retired well earlier than the stated expiry date, suggesting to me that this is the case (interest took a big dip for a long period after taking out the loan).
Prior to this I thought it was more like an Adjustable Rate Mortgage (in the US), where the total payment itself gets adjusted at specified periods according to the new rate amortized over the same period. It appears not to be the case.
Quote from: BD on December 14, 2013, 06:59:28 PM
Also to clarify...the payment stays the same, correct?
So changes in interest rate really just changes the balance of interest to principle portions of the payment.
I ask because I have had several loans get retired well earlier than the stated expiry date, suggesting to me that this is the case (interest took a big dip for a long period after taking out the loan).
Prior to this I thought it was more like an Adjustable Rate Mortgage (in the US), where the total payment itself gets adjusted at specified periods according to the new rate amortized over the same period. It appears not to be the case.
I have not noticed any changes in the end date of the numerous loans I've taken out in the current game.