Loan servicer interest calculation transparency
💸 moneyproduct problemSingle report ●●●●●
A loan borrower reports confusion and concern that their loan servicer's daily interest compounding method results in months where almost no portion of their payment is applied to the principal, despite making payments on time.
What people do today
- Contacting the loan servicer for explanation
- Reviewing billing statements manually
- Adding extra funds to monthly payments
🔧 Fix this
Ideas a builder, maker or community group could start on:
- A loan amortization visualization tool that allows users to input their specific payment dates to see how interest accrues daily vs monthly.
- A browser-based loan calculator that flags when a payment schedule is likely to result in zero principal reduction based on payment timing.
- A standardized 'Truth in Lending' dashboard template that servicers could be required to provide, showing the exact daily interest breakdown for every payment.
Real voices
“some months no portion of my primary payment is being paid towards the principal.”
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