Compare Mortgage Quotes

Guest

If a loan is a fixed rate loan , can compound interest apply to it if how and why ?

gmakerley · Posted: Sun Jun 05, 2011 6:57 pm Post subject:

Compound interest is a concept solely reserved for bank accounts (savings, etc.) and has naught to do with mortgage lending.

Of course, with savings accounts paying next to nothing to begin with, I don't know if we can say that compound interest has any relevance to our lives at all, anyway.

smithsussane · Posted: Sun Jun 05, 2011 8:05 pm Post subject:

Hi Lilly!

Welcome to forums!

I guess you should contact your lender and he will be able to let you know whether or not compound interest will apply on a fixed rate loan. But as George has mentioned in his posts, they don't apply in case of mortgages.

Feel free to ask if you've further queries.

Sussane

gmakerley · Posted: Mon Jun 06, 2011 10:16 am Post subject:

Again, though, since compound interest is irrelevant to lending, there's no need whatsoever to contact your lender. Please don't - in all likelihood, the person you speak with won't have ever worked on the banking (savings, checking) side of the banking world and won't even have a clue as to what you're referring.

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Compare Mortgage Quotes

Compound Interest

Helpful References

Our Community

Community Rewards

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1