I have a loan and the interest rate on the loan doubles.
I wish to keep the same amortization period, but should I double the payment?
If you answer could you please provide an example so I could further understand your reasoning!
+36916 No you don't have to DOUBLE your payments....but there will be an increased payment amount
simple example
borrow 100 @ 10 % per year with one payment at the end of the year amount owed would be 110
now double the interest to 20 % amount owed at end of year = 120 not double the 110 amount .....
