Lender is only able to charge 20% max over borrowed amount, spread over 360 payments. GAAP rules need to be changed to account for this, as right now banks make money over the term of the loan based on the interest paid by the lender every month, which is also why mortgage interest is front loaded into loan repayment amortization schedules.
Lender is only able to charge 20% max over borrowed amount, spread over 360 payments. GAAP rules need to be changed to account for this, as right now banks make money over the term of the loan based on the interest paid by the lender every month, which is also why mortgage interest is front loaded into loan repayment amortization schedules.
Does that mean if the principal is $100, the bank can charge $20? (100+20)
Or does it mean the bank can charge $120? (100+120)
Genuinely asking.
And under what circumstances?
and that is total complete BS too