How exactly does Wells Fargo apply payments to my loan(s)?
Re Payments are used within the after order:
- Accrued interest. If for example the repayment quantity surpasses the accrued interest, then to:
- Major stability. The staying quantity of your payment more than accrued interest is going to be placed on the main on that loan.
When you yourself have one or more loan combined in to an account that is single re re payments may be applied to all the loans as described above whether there was an independent payment declaration for every single loan or if numerous loans show up on one payment declaration. Accrued interest may be the quantity of interest that accrues daily in the loan(s).
Exactly exactly How may be the interest determined?
Your loan accrues interest utilising the simple interest method that is daily. Which means that interest accrues for a day-to-day foundation on your major stability through the date the attention fees start until such time you repay the mortgage in complete.
Exemplory case of daily simple interest calculation:
|Major stability||X||(Annual Interest Rate/day count)||= interest that is daily6,000||X||(7%/365)||=||$1.15|