I hope someone can figure this out for me because I can’t !
I tried for hours, calculating and using all different online calculators. Never work !
Bought a truck and finance with a loan company $23 468.00 on 11-17-2009.
Supposedly at 9.99% APR for 72 months with $436.43 monthly payments.
1rst payment12-30-2009$436.43Interest $295.46Principal $140.97
2nd payment01-29-2010$436.43Interest $191.54Principal $244.89
3rd payment02-26-2010$436.43Interest $176.89Principal $259.54
I guess the amount on the principal by just doing math since the account summary only shows the interest paid each month.
Refinanced with another loan company on 03-10-2010. This new loan shows that they paid off $23 107.42 on the first one. ??? Doesn’t add up !?
Got a letter from the first loan company saying the loan have been paid off (dated 03-29-2010).
Got a refund check from first loan company dated on 03-30-2010 for $103.67
It was a “refund of overpayment on paid-in-full contract”.
I need to enter that into my financial program and I can’t figure out since the balance left after the 3rd payment on the first loan was $22 882.60. Well, I though !
Can someone help me with this so confusing thing !
Thanks a lot !
The 9.99% APR is the annual interest rate, but the loan company applies part of it monthly. The interest is based on the average daily balance that period, so the less you owe, the less the interest will be (in dollars). Each time you make a payment, it pays off the interest accrued and the rest goes toward paying down the principal. The interest on the first payment was much higher because it was for more days (11/17 through 12/30 rather than regular month).
Lenders stipulate the loan pay-off amount at any given time, but it usually is an estimate because of interest calculations. It sounds to me like the 2nd company paid more than what was owed on the first account, possibly based on this estimate, and the first company has issued a refund for the difference. The amount owed to the first company would not match the last statement ending balance because of the partial-month interest. I would suggest adding $103.67 to your next payment on the current car loan; it will reduce the principal by that amount and save you interest every month going forward.
The 9.99% APR is the annual interest rate, but the loan company applies part of it monthly. The interest is based on the average daily balance that period, so the less you owe, the less the interest will be (in dollars). Each time you make a payment, it pays off the interest accrued and the rest goes toward paying down the principal. The interest on the first payment was much higher because it was for more days (11/17 through 12/30 rather than regular month).
Lenders stipulate the loan pay-off amount at any given time, but it usually is an estimate because of interest calculations. It sounds to me like the 2nd company paid more than what was owed on the first account, possibly based on this estimate, and the first company has issued a refund for the difference. The amount owed to the first company would not match the last statement ending balance because of the partial-month interest. I would suggest adding $103.67 to your next payment on the current car loan; it will reduce the principal by that amount and save you interest every month going forward.
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