By Admin on Aug 30, 2009 in Personal Finance
xteriors2003 asked:
I am wondering if when you obtain an auto loan, does the amount that goes to principal and interest stay the same throughout the life of the loan unlike a home loan where at the start most is interest? Please supply a link as well if you have one showing where I can see more info if you have one available.
I am wondering if when you obtain an auto loan, does the amount that goes to principal and interest stay the same throughout the life of the loan unlike a home loan where at the start most is interest? Please supply a link as well if you have one showing where I can see more info if you have one available.
hope this helps…
2kidsnk9 | Aug 31, 2009 | Reply
No. Like most installment loans, auto loans are typically “declining balance” loans. The amount allocated to interest tracks with the loan balance, so in the early years most of your payment goes to interest. Mortgage loans are the same.
bud68 | Sep 2, 2009 | Reply