Is there an extra car note paymt calc. to see how much interest i can save on my car loan & time of loan?
I am trying to determine how an extra car payment applied to principle only with decrease the time of my car loan and the interest of the loan. really need to find a site online where i can plug the numbers. thanks
Answer
Http://www.amortization-calc.com/
on most car loans, interest is adding up on a daily basis, based on whatever your principle balance is. your payment first goes towards whatever interest has added up since the last payment, then the rest goes to decrease the principle balance. if you pay extra that goes towards principle, then your principle balance goes down ahead of schedule, so your daily interest amount goes down. that, in turn, means less of your regular payment goes towards interest, so more of it goes towards principle.
