Loan settlement figure

[usn90]

I was under the assumption, that if I were to pay off my loan early, then I would pay less interest than the original agreement if I were to let the loan run its course.

I have 30 months left from a 48 month term, APR of 2.79% and £5105 remaining.

Settlement is £5127

[Gary29]

You've got a total of £5105 remaining at the moment, but NOT with interest added.

The £5127 will be with a day or two's interest added to the £5105 remaining.

[usn90]

ahh of course, a simple (payment) x 30 would have made this obvious, my mistake

Thanks

[Gary29]

usn90 said:

ahh of course, a simple (payment) x 30 would have made this obvious, my mistake

Thanks

If I were you, I'd do the maths and calculate your total potential repayment amount, and then you'll feel much better about paying your settlement figure!

[Rufus Stone]

usn90 said:

I was under the assumption, that if I were to pay off my loan early, then I would pay less interest than the original agreement if I were to let the loan run its course.

I have 30 months left from a 48 month term, APR of 2.79% and £5105 remaining.

Settlement is £5127

Why do this?

If you have the cash available you can get more interest on a fixed term savings bond than you are paying in loan interest.

[rossub]

Rufus Stone said:

Why do this?

If you have the cash available you can get more interest on a fixed term savings bond than you are paying in loan interest.

Good advice. Effectively 'Stoozing'

I paid off a 2.9% loan a year ago and wish I hadn't for this exact reason. Although savings rates were much lower then, so I wasn't really to know.