The Rule of 78 applies to installment loans, like mortgages, personalized loans and auto loans. Since there isn’t a single form of loan that takes advantage of the Rule of seventy eight, it’s imperative that you browse all installment loan agreements to Be careful for this curiosity fram

Lenders make money by charging desire to borrowers. The Rule of seventy eight will allow lenders to be able to gain more curiosity in the beginning with the loan repayment and less towards the end of the loan. When you are spending off your loan early, the lender could have collected far more desire