4 ms·
Generally, in the US, where you see a flat rate is in the loan details, where it's usually, if you take the entire term to repay the loan, the overall interest
by pionar 13y ago
Generally, in the US, where you see a flat rate is in the loan details, where it's usually, if you take the entire term to repay the loan, the overall interest paid is $X.
- cpwright 13y agoAs Wikipedia describes it that is not a flat rate loan. If I borrow $100,000 for 15 years at 5% it would cost me $183,389; and I expect to see that in the disclosure. But that is still a regular APR. A flat rate 5%, would mean that each year I pay 5% in interest on the $100,000; even though I've already paid off some of the principal. So I would end up paying $200,000 in total.