Posted by Craig / CA
on March 26, 2009, 11:39 pm, in reply to "Different methods for different lenders"
69.235.2.50
Jumped online for a quick perusal before crashing for the night.
Your simple explanation above appears to be stating you pay down $1,600 in principle each and every month. If that's the case, I want your lender who will allow me to pay a disproportionate amount of principle at the beginning of the loan. Then again maybe not, he might just be neg am'ing me to allow such a payment scheme. I'll have to think about that one for a bit. 
To tired to solve that one right now.
The reason why your worded steps don't work (I don't want to take the time to look over the equation farther down right now, I'll never get the rest I need) is loans are front loaded with interest due to their very nature, higher beginning balance reducing over time till payed off..(though not like rule of 78 loans that were common years ago in car loans).
I'll check in again on Monday, my concentration will be on out driving my competitors this weekend.
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