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
wildtoad wrote:
All loans work the same. Interest is calculated based on the remaining principle. This is why paying more than you have to each month is beneficial. The extra payment amount reduces the outstanding owed thus reducing the interest portion.
That was such a simpler way of explaining it! :)
