So how exactly does Wells Fargo use payments to my loan(s)?
Re Payments are used when you look at the order that is following
- Accrued interest. Then to if your payment amount exceeds the accrued interest:
- Major stability. The amount that is remaining of re payment in excess of accrued interest would be put on the key on that loan.
When you have several loan combined as an account that is single re re payments is going to be put on each one of the loans as described above whether there clearly was a different billing declaration for every single loan or if numerous loans show up on one payment declaration. Accrued interest may be the number of interest that accrues daily regarding the loan(s).
Just exactly just How may be the interest determined?
Your loan accrues interest making use of the simple interest method that is daily. Which means interest accrues on a day-to-day foundation on your major balance through the date the attention fees start unless you repay the mortgage in complete.
Exemplory instance of daily simple interest calculation:
|Principal stability||X||(Annual Interest Rate/day count)||= interest that is daily6,000||X||(7%/365)||=||$1.15|