Dont understand my interest charged

[Bez]

Hey guys, its the end of the month and i got charged my interest..
I just dont understand how it works becasue my interest this month is more than it was last month and my loan has only been going down not up..

This is how it looks...

Last month
$135,000
$111,000 (lump sum payment)
$110,597
$110,194
Interest charged - $659.95

This month
$110,450
$110,000
$109,597
Interest charged - $773.06

What am I missing ? there must be something im not understanding ?

 

[alexlee]

That seems weird. When did this loan start? i.e. it didn't start in the middle of the previous month, did it?
Alex

 

[Rixter]

Interest calculated daily & debited monthly.

Number of days in different months vary.

When is the start & finish of the monthly cycle.

Interest rates

All these will effect it.

Hope this helps.

 

[Bez]

The loan started the 5th of April this year..
The loan has always been going down since it started and this has happened before, not just this month..
Some months I pay more than others but its always going down, so I would asume the interest charged should be less every month without fail ?

 

[wylie]

What about the most recent rate rise? Would this affect your loan?

Wylie

 

[Rolf Latham]

Hiya Bez

what sort of loan and who is the lender pls ?
ta
rolf

 

[Bez]

Homeside Lending - Plain & Simple Loan
P&I repayments

I dont think it has anything to do with the rate rise as this has been happening before the rate rise aswell..

 

[dr3tz]

This happened to me this month as well. What i think cause this is the timing when the interest payment is taken out. For September the interest is charged on 28 Sept as the last day of the month (30) falls on a sunday. As such the interest charged in september is only for 28 days. The remaining two days of september's interest is charged in the october interest payment, therefore in october you are essentially paying 33 (31+2) days worth of interest.

Just make a spreadsheet to confirm that this is correct.

AU

 

[pi2012]

I agree with dr3tz

I was charged for 28 days last month and this morning, charged for 33 days as explained by dr3tz.

 

[Bez]

Ahh thats probly it, thanks guys