I am trying to understand equity loans better. I would like to give a scenario:
A person get a equity loan at 4.24% for $15,000.00. He uses the whole $15,000.00. He is paying interest only at $83.00 monthly and $65.00 yearly fee. He has to start paying in 10 years on the principle.
At the 10 year period, paying interest at $83.00 monthly, he would have paid $9,960.00.
My question is when he started paying on the principle and interest after 10 years, would the $9,960.00 that was already paid in interest in anyway lessen the amount of the $15,000.00 loan?
If you could explain that for me, it would be greatly appreciated.
Also, any tips will be appreciated.
Thanks in advance.