Why is my pay off amount different from my loan balance?An installment loan balance typically includes the principal, interest, and fees owed as if all the loan payments will be paid when due until the maturity of the loan. This is known as a pre-computed interest loan. If you choose to pay your loan off prior to the maturity of the loan then a portion of the pre-computed interest and certain loan fees included in your loan balance are often refunded. Also, if you purchased credit insurance a portion of the insurance premium may be refunded. These refunds will cause the pay off amount to be less than your loan balance. Other charges like late fees, NSF fees, etc. that are not included in your balance may be added to arrive at the pay off amount. |
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