How is Auto Interest calculated?

Credit and mortgage advice Forums Financial and Innovatemarkets How is Auto Interest calculated?

This topic contains 0 replies, has 1 voice, and was last updated by  jesuslewis 1 year, 6 months ago.

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    At least today most every lender uses simple interest (not sure about repo-buy-here-pay-dear lots) rather than the rule of 78’s “rule of 78 – sum-of-the-digits method” which was pretty much universal not so long ago. To save you – that don’t know – the interest was front loaded on these loans and cost the borrower dearly ANd most had a pre-payment charge if you paid the loan early.

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