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Does anyone understand the difference between simple interest fixed loans and traditional fixed loans?

April 26, 2017Business difference Finance fixed Loans simple traditional understand

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Does anyone understand the difference between simple interest fixed loans and traditional fixed loans?

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Simple interest means that your interest is computed monthly. This is the traditional method of computing mortgage loans. With daily interest the interest is computed every day. If you pay early in the month, daily saves you on the computing interest. However if you pay later in the month the compounding makes there interest higher.