How is interest applied on an RV loan?
When you take out a 10 year RV loan, is the interest spread out equally across all the payments or is it mostly paid up front like a home mortgage?
Forum Discussion
That sounds like a question to ask your lender.
Generally speaking, though, if the interest rate and total payment amounts are fixed, there has to be more interest paid with the first loan payments than the last ones. The interest is, after all, a percentage of the current outstanding balance, which is being paid down over time...so the interest paid per installment also goes down over time.
Generally speaking, though, if the interest rate and total payment amounts are fixed, there has to be more interest paid with the first loan payments than the last ones. The interest is, after all, a percentage of the current outstanding balance, which is being paid down over time...so the interest paid per installment also goes down over time.
