Posted 10/8/2024 13:20 (#10919366 - in reply to #10918720) Subject: RE: Farm Loan Payment Early
Kooiker - 10/7/2024 21:12
Usedtofarm - 10/7/2024 14:17
Kooiker - 10/7/2024 14:03
He’s still paying principle 4 months early.
$10,000 borrowed at 5% cost $1.36 every day.
If you pay $10,000 of principle 100 days early, that saves $136 in interest cost.
In year 1 he saves that $136, by paying 8 months interest. In year 2 if he again pays on Nov. 1, he will pay the full 12 months interest, so won't save that $136.
Farm Loan Payment Early
