All consumer loans are on a promissory note that bears "simple interest".  When you make a payment on your consumer loan, interest is calculated by counting the number of days since your last "principal" payment and multiplying that number by your daily interest factor on the balance outstanding (amount owing prior to receiving the current payment).  The resulting figure is the amount of interest you owe, and it is subtracted from the total amount you are paying.  The remaining amount is used to reduce your principal balance.

The following example should help:

      Balance of loan prior to receiving payment is $1,000.00

       Payment made is $100.00

       Number of days since last principal balance payment is 37

       Daily interest factor ($1,000 X 13% / 365) = $0.35

       Amount of interest owed (37 days X $0.35) = $12.95

       Amount of principal paid ($100 - $12.95) = $87.05

       Balance after payment ($1,000 - $87.05) = $912.95

Also remember that there is never a penalty for paying a consumer loan off early.  As a matter of fact, we encourage it - it saves you interest!

* Interest, Pre-payment fees, and late fees vary based on the Mortgage Loan program assigned, check with a CSE Mortgage Lender for more information. 

*Home Equity Line of Credit (HELOC) stipulates a minimum three (3) years repayment term in order not to be access initial closing cost, contact a CSE Mortgage Lender for more information.