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I have a Loaner's Lending Club account. There seems to be a discrepancy between some of the numbers on my account (the discrepancy would be in my favor, I just want to know why they are the way they are).

The below image shows the situation. My interest rate is about 7% currently, and it has never been above that. The total payments I've received which includes interest and principle is about $500. Yet it says the interest I've been paid is ~$100. How can my interest rate be 7% and 20% of the amount I've been paid be interest? I'm sure I'm just missing something, but I'm not sure what. Thanks!

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  • Have you tried clicking the "Understanding Your Returns" link? – Matthew Nov 12 '14 at 23:58
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Jenny, let me digress a moment. A $200K mortgage at 6% would have a payment of $1199.10, but that first month, the interest accrued was $1000 exactly. So the near $1200 payment was $1000 interest, $200 principal. A scammer (actually it was a company with lots of employees) claimed that this proved that the "true rate" paid was 500%. 1000/200 = 5. A number of bloggers went after these claims, but people are very gullible, and want to believe this strange fiction.

The total payment you received was $110 interest and $390 principal. $1580 * .07 is $110. I hope that helps you understand what's going on.

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