How exactly does Wells Fargo use payments to my loan(s)?
Re re Payments are used into the order that is following
- Accrued interest. Then to if your payment amount exceeds the accrued interest:
- Major balance. The amount that is remaining of re payment in excess of accrued interest will likely be placed on the main on that loan.
When you yourself have several loan combined right into an account that is single re re payments will undoubtedly be put on all the loans as described above whether there clearly was an independent payment declaration for every single loan or if numerous loans show up on one payment declaration. Accrued interest may be the level of interest that accrues daily regarding the loan(s).
Just How may be the interest determined?
Your loan accrues interest utilizing the simple interest method that is daily. Which means that interest accrues for a basis that is daily your major stability through the date the attention fees start until such time you repay the mortgage in complete.
Illustration of daily simple interest calculation:
|Major balance||X||(Annual Interest Rate/day count)||=||Daily interest|