Amount Borrowed
The principal of this loan is the amount you borrow today, before any interest is added. Interest accrues on the outstanding principal, and through compounding any interest not yet paid may itself be added to the balance on which future interest is charged.
Interest Rate and APR
The annual percentage rate (APR) shown above reflects the yearly cost of this credit, including interest and most fees. If this loan carries a variable rate, the rate may rise or fall over the term as the benchmark index changes, and your payment may change accordingly.
Repayment and Amortization
You agree to repay this loan in fixed monthly installments. Through amortization, each payment is divided between interest and principal; early payments apply mostly to interest, so the principal balance falls slowly at first and faster over time.
Prepayment
You may repay all or part of the balance early. A prepayment penalty may apply if you pay the loan off ahead of schedule, as disclosed in the schedule of charges; this fee can offset part of the interest you would otherwise save.
Security and Escrow
If this loan is secured, you pledge the described collateral, which the lender may claim if you fail to repay. Where applicable, a portion of each payment may be held in escrow by the lender to cover related taxes, insurance, or fees until they fall due.