So how exactly does Wells Fargo use payments to my loan(s)?
Payments are used within the order that is following
- Accrued interest. If for example the payment amount surpasses the accrued interest, then to:
- Major stability. The staying quantity of your re re payment more than accrued interest will undoubtedly be placed on the main on that loan.
For those who have one or more loan combined into an account that is single re payments are going to be placed on each one of the loans as described above whether there clearly was a different payment declaration for every single loan or if numerous loans appear on one payment statement. Accrued interest could be the number of interest that accrues daily regarding the loan(s).
Just How may be the interest determined?
Your other loan accrues interest with the simple interest method that is daily. This means interest accrues on a day-to-day foundation on your major stability through the date the attention costs start before 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|