Car loan payment question

[Pariah]

Got a question for people with more loan smarts than me. I reviewed my last 6 months of car payments wanting to see how much goes toward principle and toward intrest. Even though I'm making the same payment almost every month, what gets paid to the principle is different each month. It goes up and down every month.

Heres my last 6 payments (1st column), with what went toward principle (2nd column) and intrest (3rd column).

300.00 | 256.37 | 43.63
272.31 | 196.82 | 75.49
272.31 | 213.44 | 58.87
300.00 | 247.93 | 52.07
300.00 | 261.91 | 38.09
300.00 | 231.15 | 68.85
272.31 | 215.46 | 56.85

Why the disparity between months even though I pay the same amount? My intrest rate is a fixed 6.75%.

[NevadaXJ]

I may be wrong, but I believe they calculate what goes towards interest on the day you pay. So, if you pay on the 13th one month, and then the 15th the next month, you will pay more in interest on the 15th. The later the payment, the more interest you pay.

[Pariah]

So the payment towards intrest is based on a daily rate then. Make a payment after 30 days=more intrest, make a payment after 20 days=less intrest. That makes sense.

[Suckerpunch]

I may be wrong, but I believe they calculate what goes towards interest on the day you pay. So, if you pay on the 13th one month, and then the 15th the next month, you will pay more in interest on the 15th. The later the payment, the more interest you pay.

x2

my wife is a loan officer doing auto pay. this is exactly why. try to make your payments on the same date.

[mdtrader©]

x3 - Cousin is a loan officer...same thing.

[Pariah]

x2

my wife is a loan officer doing auto pay. this is exactly why. try to make your payments on the same date.

Wouldn't it average out? Since its based on a daily rate.

[Suckerpunch]

my wife was trying to make me understand this in order to help you out, but now my brain is on fire and I have a huge headache. sorry Im with you...:crikey:

[Pariah]

LOL! Do what I do... Say, "Hang it all!" and :beerchug:

[david]

it makes very little differance just pay your payment every month the longer you pay the more intrest goes down. some month are longer than others

[Suckerpunch]

it makes very little differance just pay your payment every month the longer you pay the more intrest goes down. some month are longer than others

now if only my wife the "auto loan genius" could have put it that way...:pissed:

[david]

Got a question for people with more loan smarts than me. I reviewed my last 6 months of car payments wanting to see how much goes toward principle and toward intrest. Even though I'm making the same payment almost every month, what gets paid to the principle is different each month. It goes up and down every month.

Heres my last 6 payments (1st column), with what went toward principle (2nd column) and intrest (3rd column).


Why the disparity between months even though I pay the same amount? My intrest rate is a fixed 6.75%.

if you think those numbers are hard to figure out try figuring out a house pyment:scratch:

[WILLD420]

That's why I set up auto payments at the bank. It goes out same day, every month, no matter what. Unless there is a problem at the bank, then it goes out when the system is able to push it out.

I'm way to scatterbrained to get the payment made on my own at the same time every month.