Finance ppl… loan question!!
Anyone work in finance or have more experience than me lol.
We came across hard times, single mom, two kids. Roof started leaking. Found a very reputable local owned company who went above and beyond in promptly replacing my house roof. They offered financing and i chose that option because i didn’t have the extra 10k to cover it. It was unexpected. I was VERY careful reading EVERYTHING in the loan process. it was through one of a few companies they use and it was made to be quite easy.
The rate was fair. payoff was like ten years. but told myself i’ll pay it down sooner.
i signed on to the account and my total hasn’t gone down at all despite paying for like 6 months now? it was like 5% interest.
so my question is .. is it possible that the company has you paying for all the interest first before it puts any of your money toward the principal balance? is this legal? nowhere in the print did it say first 5 years you’re paying 100% towards interest. but i don’t see any other explanation? the amount isn’t going down. i’m so confused. Before i signed everything it broke down the interest amount. fixed apr. how much of the payment interest vs payment toward the principal. yet i’ve been paying for months and the total isn’t lessening.
Achieve your health goals from period to parenting.