Interest is applied on the total principal owed on the loan. This amount changes as the loan goes on, so what you should see is a larger amount of your monthly payment going towards the principal and a smaller amount going towards the interest. Furthermore, some months have more days than others and that can affect the amount of interest paid, too.
Why does the interest fluctuate on a fixed-rate car loan?Answered by Car Loans Expert Johnny on March 18, 2021
I have a car loan with a fixed rate, but the amount of interest charged varies month to month. Why does the interest amount fluctuate like this?
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