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Is it better to pay off the interest or the prinicipal on a loan first?
Wiki User
∙ 16y ago
Make your payments on time and pay as much extra on the principle. That will drop your interest as well. On most payment plans, you are paying the interest first and nothing on the principle. Put as much as you can into it and get it paid off quicker and cheaper.
Wiki User
∙ 16y ago
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What form shows how a loan is paid by listing the principle and interest associated with each payment?
The listing of payments that shows prinicipal and interest is an amortization table.
What type of interest is better to have when applying for a loan?
A+ Simple Interest
Are student loans and auto loans the same on your credit report or would one be better to pay off first?
Always pay off the higher interest loan first, then take whatever payments that you WERE making on that loan and add it to the NEXT higher interest loan and continue the process.
Are low interest loans better than high interest loans?
In general, a low interest loan is better than a high interest loan. The only time this may differ is if you are getting a variable rate loan, which may become lower than a higher fixed rate loan over time. However, this can be hard to predict, so it is always better to go with the low interest rate.
Which type of interest is better to have applying for a loan?
compound
Is it better to get a high interest short term loan or a low interest long term loan?
It depends on how long you need the loan for and how long it would take for you to complete the payment. But in general a low interest long term loan means a higher interest payment over the life of the loan where as a high interest short term loan means less amount of interest payment over the life of the loan.
Which type of interest is better to have when applying for a loan?
compound
What is the highest interest rate on a Direct Subsidized or unsubsidized loan?
From the first disbursement of the loan
What is the definition of an amortized loan?
An amortized loan is just a basic loan where the principal and interest are paid on a monthly basis. Usually, the majority of the interest is paid first, then the principal.
What does the term mortgage mean?
This is when you take the loan you currently have and then refinance the current amount for better interest rates and better payment installments. It gives a better payment and interest rate, however it will place the loan back into a longer period to pay off.
What are typical interest rates for a first home loan?
A typical interest rate for someone taking out a first home loan will average between 5 and 6 %. The actual rate will depend on the terms of the loan and the competitiveness of the lender.
What is low interest loan?
The loan whose interest rate is low is called low interest loan. If you got a unsecured loan @ low interest rate then it would be low interest loan for you.
