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A very rough calculation using Karl Jeacle's mortgage calculator (I know it's not a mortgage but the same general principles apply to any loan) and entering €20K, 5 years (can't enter 57 months) starting in January 2007 and 7.73% gives the following annual table:hi there. of march 2007 i took out a car laon of 20k at my cu in a promotional car loan rate of 7.73%. Monthly payments of 421 euro over 57 months. Cost of credit for this loan is 3795 euro. In the last 12 months i have paid almost 1200 euro in interest which i think seems quiet alot.
[B]Year Interest Principle Balance[/B]
2007 €1,426.91 €3,408.49 €16,591.51
2008 €1,153.91 €3,681.49 €12,910.02
2009 €859.02 €3,976.38 €8,933.64
2010 €540.52 €4,294.88 €4,638.76
2011 €196.53 €4,638.76 €0.00
You don't say when the loan started but assuming the details above (in particular starting in January 2007) and making the €2K lump sum capital repayment in April 2007 the following results:I also paid 2000 grand off the loan last april bringing down the balance thinking ineterst would drop as well.
[B]Year Interest Principle Balance[/B]
2007 €1,321.51 €5,513.89 €14,486.11
2008 €985.24 €3,850.16 €10,635.95
2009 €676.87 €4,158.53 €6,477.42
2010 €343.81 €4,491.59 €1,985.83
2011 €38.72 €1,985.83 €0.00
Eh? Surely they can explain matters to you if you are confused!?i contacted my cu, they said give it a few months and see what happens!
What about their oft quoted "interest charged on reducing balance" claim to fame?I think generally with credit unions you can pay off lump sums or finish loan early, but you are still liable for the full interest on the original loan.
All seems alright but CU should have given you exact details.hi there. of march 2007 i took out a car laon of 20k at my cu in a promotional car loan rate of 7.73%. Monthly payments of 421 euro over 57 months. Cost of credit for this loan is 3795 euro. In the last 12 months i have paid almost 1200 euro in interest which i think seems quiet alot. I also paid 2000 grand off the loan last april bringing down the balance thinking ineterst would drop as well. Interest only seems to come down by 10 cent every week. I have a balance of 14392 left and in last 12 monts ive paid nearly 7 grand... Loan normal or mistake in interest calculations?
i contacted my cu, they said give it a few months and see what happens!
I think generally with credit unions you can pay off lump sums or finish loan early, but you are still liable for the full interest on the original loan. Its best to sort out the terms at the start.
Isn't that the case with most or all non fixed rate loans from other (e.g. non CU) sources?You are wrong. In credit unions you only pay interest on the declining balance and this applies to all balances. In fact it is one of the advantages of credit unions - if you want to pay off early there are no charges or penalties.
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