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!

Guest May 25, 2021

#1**+1 **

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 .....

ElectricPavlov May 25, 2021