자유게시판

Open navigation Main Menu Mortgages

Financing a home purchase refinancing your present loan Finding the right lender Additional Resources
Looking for a financial advisor? Try our three minute test and connect with an advisor today.



Main Menu Banking

Compare Accounts Use calculators Get advice Bank reviews
Looking for a financial advisor? Try our three minute test and connect with an advisor today.



Main Menu Credit cards

Compare according to category Compare with credit requirements Compare with issuers Get advice
Are you looking for the ideal credit card? Narrow your search with CardMatch(tm)



Main Menu Loans

Personal Loans Student Loans Auto Loans Calculators for loans
Find the perfect personal loan in 2 minutes or less. You can also answer a few questions to receive offers with no effect on your credit score.



Main Menu for Investing

Best of Brokerages and robo-advisors . Learn the basics Additional information
Looking for a financial advisor? Take our 3 minute quiz and match with an advisor today.



Main Menu Home equity

Find the lowest rates Lender reviews. Calculators. base
Looking for a financial advisor? Take our 3 minute quiz and match to an adviser today.



Main Menu Real estate

Selling a house Buying an investment property Finding the right agent Additional sources
Looking for a financial advisor? Take our 3 minute quiz and match with an advisor today.



Main Menu Menu Insurance

Car Insurance Homeowners insurance Other insurance reviews of the company
Looking for a financial advisor? Try our three minute test and then match up with an advisor today.



Main Menu Retirement

Retirement accounts and retirement plans Learn the basics Retirement calculators Other sources
Looking for a financial advisor? Take our 3 minute quiz and match the advisor you want today.



The search is open and closed.

Submit


What is a precomputed rate auto loan? Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our mission is to help you make better financial decisions by providing you with interactive financial calculators and tools as well as publishing high-quality and impartial content. We also allow you to conduct your own research and compare information at no cost to help you make financial decisions with confidence. Bankrate has partnerships with issuers including, but not restricted to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The offers that appear on this site are from companies that compensate us. This compensation could affect how and when products are featured on this website, for example for instance, the sequence in which they appear within the listing categories, except where prohibited by law. Our loans, mortgage, and other products for home loans. But this compensation does not influence the information we provide, or the reviews you read on this site. We do not include the entire universe of businesses or financial offerings that could be accessible to you.



SHARE:

The Page On This Page on This Page
Prev Next







Hinterhaus Productions/Getty Images
3 min read . Published on October 17, 2022.
Written by Kellye Guinan Written by Personal and business finance contributor

Kellye Guinan is a freelance editor and writer who has more than five years of experience in personal finances. She is also a full-time employee at the library in her town which she assists her local community to get information on financial literacy, as well as other topics.







The edit was done by Rhys Subitch Edited by Auto loans editor

Rhys has been editing and writing for Bankrate since the end of 2021. They are passionate about helping readers gain confidence to manage their finances through providing concise, well-researched and well-studied content that breaks down otherwise complex subjects into bite-sized pieces.









The promise of the Bankrate promise
More information
At Bankrate we aim to help you make smarter financial decisions. We adhere to the highest standards of editorial integrity ,
this post may contain some references to products offered by our partners. Here's a brief explanation of how we make money .

The promise of the Bankrate promise
Established in 1976, Bankrate has a long track history of helping people make informed financial decisions.
We've maintained this reputation for more than 40 years by demystifying the financial decision-making
process, and giving people confidence in the decisions they will take next. process and gives people confidence in the next step.
You can rest assured that we're putting your interests first. All of our content is authored by and edited by ,
who ensure everything we publish will ensure that our content is reliable, honest and reliable. Our loans journalists and editors focus on the things that consumers care about the most -- different types of lending options as well as the best rates, the top lenders, how to pay off debt and more -- so you'll feel safe making your investment.



Editorial integrity
Bankrate adheres to a strict code of conduct standard of conduct, which means you can be confident that we'll put your needs first. Our award-winning editors and journalists produce honest and reliable content that will assist you in making the right financial decisions. Our main principles are that we appreciate your trust. Our aim is to offer readers reliable and honest information. We have editorial standards in place to ensure that this happens. Our reporters and editors rigorously check the accuracy of editorial content to ensure the information you're receiving is true. We have a strict separation with our advertising partners and the editorial team. Our editorial team doesn't receive direct compensation by our advertising partners. Editorial Independence Bankrate's team of editors writes for YOU - the reader. Our goal is to give you the most relevant information to assist you in making intelligent financial decisions for your personal finances. We follow strict guidelines in order to make sure that the content we publish isn't in any way influenced by advertising. Our editorial team receives no directly from advertisers, and our content is verified to guarantee its accuracy. If you're reading an article or review, you can trust that you're getting credible and dependable information.



How we make money
You have money questions. Bankrate can help. Our experts have been helping you master your money for over four years. We strive to continuously provide consumers with the expert guidance and the tools necessary to succeed throughout life's financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and journalists provide honest and trustworthy information to assist you in making the right financial choices. Our content produced by our editorial team is objective, factual and is not influenced through our sponsors. We're transparent about how we are capable of bringing high-quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or when you click on specific links on our website. This compensation could affect the way, location and when products appear within listing categories, except where prohibited by law. We also offer mortgage home equity, mortgage and other home lending products. Other elements, such as our own website rules and whether the product is available in the area you reside in or is within your own personal credit score may also influence how and where products appear on this site. Although we try to offer an array of offers, Bankrate does not include details about every credit or financial product or service.



Precomputed interest is an uncommon way of calculating rates on an auto loan which benefits the lender. Instead of dispersing the interest equally over the life of the loan the interest is front-loaded -- meaning that you pay more in interest at the beginning of the loan and less at the end. If you only make the minimum payments and do not make any distinctions between pre-calculated interest auto loans. You can get some cash back if you repay your auto loan in advance however, it's lower than a standard interest auto loan. The way a precomputed interest auto loan functions "Precomputed" is the term used to describe how the lender determines the amount of interest you'll pay over the loan term. Then, it adds that rate of interest on top of the principle amount and divides it into monthly payments, similar to traditional auto loans which use interest that is simple. The method of calculating interest favors lenders when you pay early. They're not as popular as traditional interest loans. They are more likely to see them offered by buy-here, pay-here dealers and other lenders that work on behalf of bad credit borrowers. Because of this, they are more likely to charge very high interest rates. You'll receive an interest rate and an annual percentage rate which includes any additional fees. Precomputed interest vs. simple interest. Precomputed interest is a way to front load what you pay you, it is possible to split the interest equally. If you pay higher than your minimum amount cuts down on the principal amount, which, in turn, results in a lower interest rate the next month. If you only make the minimum payment, there won't be a distinction between these two methods to calculate interest. But if you plan to try to repay your auto loan quickly, interest-only loans are the best choice. This is the rule that applies to 78. Lenders are not legally allowed to charge you interest that hasn't been accrued. However, they may alter the way interest is divided over the course of a loan. A rule called 78 can alter how you but not the total amount you pay. The is among the most popular tactics -- and the foundation for precomputed interest auto loans. Lenders add up all the months in the year, which add up to 78, the interest is then applied in reverse. For a one-year loan you'd have to pay 12/78 percent of interest due in the initial month. The second month will be 11/78, the third month is 10/78, and on and so forth. This means you will pay more at the start the term of your loan. You can get a rebate on interest when you repay your loan in advance, but it won't be as effective as you would with a simple interest loan. Some states have banned this rule of 78in addition, it's prohibited for loans that last more than 61 months. Check your state's laws to ensure that your lender doesn't offer you the wrong loan. What is the method by which interest refunds are calculated for precomputed auto loans? The refunds can be calculated as a result of subtracting the amount of interest you have previously paid off from balance of interest on the loan. However, since the interest is frontloaded -that is, you pay a larger part at the start of the loan and you'll have less refunded the longer you wait to pay off the loan. For example, you will pay about $4,800 in interest on the $30,000 loan with a 60-month repayment term and a 6-percent interest rate. If you pay off your loan two years early, the lender will add up the first three years -- multiplying 78 by three to get 234 -- then divide the result by 390, which is the rule of 78 spread across five years. The lender has received 60 percent of the interest by this point. This means you'll get the remainder of the 40 percent -- totaling $1,920. Benefits and drawbacks of precomputed interest Precomputed interest is only a drawback when you wish you to settle your loan in advance. Otherwise, it will cost the same amount as a regular interest loan. Advantages: Since precomputed interest favors the lender it is more likely to be granted to borrowers with less-than-perfect credit. If you aren't eligible for a standard interest auto loan but you might be able to get precomputed interest loan. There is no difference in the amount of interest that you pay with the precomputed interest auto loan. If you adhere to the minimum payment schedule, a precomputed interest loan is exactly identical to a regular interest loan.
Cons The main drawback of precalculated interest is that it can lead to early payments. You will pay more in interest if you pay off your loan earlier and this means you will have less savings to be financially responsible. Because lenders are limited to using the 78-day rule on loans that are sixty months and less, it is possible that you may have higher monthly payments. If you're only qualified for a precomputed-interest auto loan and you are not eligible for precomputed interest auto loans, your loan may be more expensive in the month.

The reasons to avoid automated interest-based automobile loans In general, straightforward interest rates are the ideal option for almost every borrower. Even even if you're not planning to repay your loan at a later date, your situation could alter. And if it does, an easy interest loan will mean you pay less overall. Because you pay more interest when you first take out a precomputed auto loan and you'll lose out on savings if you make a payment early. It may only be a small variation, but it's your money. The lower the amount you must pay your lender, the more favorable. The bottom line is that precomputed interest auto loans are avoidable however they are not the worst thing when you plan to pay minimum monthly payments. Still, you should to find more lenders -- and possibly a better rate.


SHARE:
Written by a Personal and Business finance contributor

Kellye Guinan is a freelance editor and writer who has more than 5 years experience working in the field of personal finance. She's also a full-time employee at the library in her town which she assists her local community to access information about financial literacy, in addition to other topics.



Edited by Rhys Subitch Edited by Auto loans editor

Rhys has been writing and editing for Bankrate since the end of 2021. They are committed to helping readers to manage their finances by providing precise, well-researched and well-understood information that breaks down complex topics into manageable bites.






Auto loans editor




Related Articles Read 3 minutes of loan documents Feb 08, 2023.

Auto Loans 8 min read January 12, 2023

Auto Loans 3 minutes read on Oct 20, 2022

Auto Loans 3 min read Oct 17, 2022






About
Help
Legal Cookie settings Do not sell my info
How we make money Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for the promotion of sponsored goods or services, or when you click on certain hyperlinks on our site. This compensation could influence the manner, place and in what order items are displayed within the categories of listing, except where prohibited by law. We also offer mortgage or home equity products, as well as other products for home loans. Other factors, like our own website rules and whether the product is available within your region or within your own personal credit score may also influence how and where products appear on this site. While we strive to provide the most diverse selection of products, Bankrate does not include details about every credit or financial product or service. Bankrate, LLC NMLS ID# 1427381 | BR Tech Services, Inc. NMLS ID #1743443 |
|

(c) 2023 Bankrate, LLC. The Red Ventures company. All Rights Reserved.

If you liked this short article and you would like to get much more data with regards to payday loans online same day arkansas (financekseg.ru) kindly stop by the internet site.