ST Alpha - "What, so if you borrow with a 20 year term you pay 20 years of interest before any principal? That’s weird. -- nm" (Reading a Post)

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In response to "Yeah. I mean typically (say mortgage) your paying all the interest up front. This seems wonky. -- nm" by VMan

What, so if you borrow with a 20 year term you pay 20 years of interest before any principal? That’s weird. -- nm

Posted by mafic Dec 2 '21, 06:00

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A loan payment is generally applied in the following order: fees, interest, principal. -- (edited) - znufrii Dec 2, 06:03 2
- Yeah, just making sure it wasn’t some weird American thing. Like your interest is in imperial or something. -- nm - mafic Dec 2, 06:11 1
  - No, the weird American thing here is that it is almost impossible to have student loans discharged in bankruptcy. -- nm - znufrii Dec 2, 06:14

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