I have a car loan. This is a simple interest loan. When I enter in the details into a loan amortization calculator online, I get a different payment amount than what I have been paying. And, the calculated amount going to principle is considerably more than what the statement from the bank reads. In fact, if I play around with the calculator, and increase the APR by about 0.77 percent, the amortization table seems to coincide with what I have been paying so far. I have tried this on multiple loan calculator web apps, and I have triple-checked the interest rate. Is it possible my bank has been charging an interest rate higher than what they were supposed to?
Is it possible my bank has been charging an interest rate higher than what they were supposed to?
It's certainly possible, people make mistakes all the time. You should check with the lender to see if any numbers they use differ from what your loan paperwork states. It could also be that the calculator you are using is incorrect or that your loan interest is not calculated the way you understood it to be.
All anyone else can do is speculate with the information provided, so it is best to contact lender first.