So how exactly does Wells Fargo use payments to my loan(s)?
Payments are used within the after order:
- Accrued interest. Then to if your payment amount exceeds the accrued interest:
- Major stability. The staying number of your re payment more than accrued interest may be put on the main on that loan.
For those who have one or more loan combined in to an account that is single re payments will undoubtedly be placed on each one of the loans as described above whether there clearly was a different payment statement for every loan or if perhaps multiple loans show up on one payment statement. Accrued interest could be the level of interest that accrues daily regarding the loan(s).
Just exactly How may be the interest calculated?
Your loan accrues interest utilising the simple interest method that is daily. This means interest accrues on a basis that is daily your principal stability through the date the attention costs start unless you repay the mortgage in complete.
Exemplory instance of daily simple interest calculation:
|Major stability||X||(Annual Interest Rate/day count)||= interest that is daily6,000||X||(7%/365)||=||$1.15|