I’m new to learning about finances. I never had anyone to show or explain to me how loans work. And I just figured out that I need to make principal only payments if I want to pay off my loan early so I don’t have to pay so much in interest.
My problem is that I was just making extra payments every month thinking that it was going toward paying down my loan but what I didn’t realize was that a portion of every payment was going toward interest and now it seems I’ve over paid my interest rate by almost double.
I’ve started making the change to my additional payments as principal only but they are still taking interest out of my monthly payments. I don’t have enough to payoff at this moment, maybe by the end of the year I might have enough.
Is there any way I can get the extra interest I paid moved over to my principal?
Please help me understand this. I’m so frustrated and confused. Also I feel really stupid asking this so please be nice. I don’t have anyone to explain or help and I’m realizing the internet (google search) doesn’t offer much info on this (or maybe I’m just really bad at how to research) Thanks for your help in advance.
Submitted October 21, 2021 at 04:12AM by Educational-Weather4 https://ift.tt/3vJXAu5
