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What makes the first interest period different?
Disbursement and the first scheduled payment may create a period shorter or longer than later ones.
That can help explain why the opening payment differs.
Locate the dates and ask the provider to reconcile the figure with its method. Do not label a difference a hidden charge before distinguishing timing, interest and separately stated fees.
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Definitions
- Nominal interest rate
- Stated rate used to calculate interest under the agreement; it does not describe every other charge.
- Annual comparison measure
- Annualized disclosure used to compare borrowing costs; its calculation and included charges depend on the jurisdiction and product.