Auto loan amortization question?

Sunday, January 18th, 2009 at 02:45

Harry asked:

I am wondering if when you obtain an auto loan, does the amount that goes to principal and interest stay the same throughout the life of the loan unlike a home loan where at the start most is interest? Please supply a link as well if you have one showing where I can see more info if you have one available.

Reply:

No. Like most installment loans, auto loans are typically "declining balance" loans. The amount allocated to interest tracks with the loan balance, so in the early years most of your payment goes to interest. Mortgage Generic Cialis loans are the same.

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