Rather than hijacking the mortgage question thread I figured I would create my own while it was on my mind. I have been sending in extra money on my truck payment every month trying to pay it off early.
My payment is 308 a month and sometimes I send about two hundred or more a month extra. When I get my statement from the bank it shows that it charged interest to my 308 at about 50 bucks or under and to the extra payment interest of about 50 a month. Shouldn’t my extra payment be only applied to principal. I don’t understand the way they do interest I guess. Before when I was making just the minimum payts 308 the interest charge per month was about one hundred bucks so I figured it is about the same even with the extra payment.. But why does it show part of the interest charged to my extra payment?
My payment is 308 a month and sometimes I send about two hundred or more a month extra. When I get my statement from the bank it shows that it charged interest to my 308 at about 50 bucks or under and to the extra payment interest of about 50 a month. Shouldn’t my extra payment be only applied to principal. I don’t understand the way they do interest I guess. Before when I was making just the minimum payts 308 the interest charge per month was about one hundred bucks so I figured it is about the same even with the extra payment.. But why does it show part of the interest charged to my extra payment?