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A financed charge can change more than the opening balance
If a fee becomes part of an interest-bearing balance, its later cost may differ from its face amount.
That effect depends on the agreement's calculation rather than the fee name.
Ask where it enters the schedule and disclosure. Counting the face charge again on top of a total that already includes it can also distort the comparison in the other direction.
Work through the repayment planning guide
Definitions
- Total repayable
- Sum payable under the stated schedule and its assumptions; contingent charges and changes must be considered separately.
- Amount received
- Money actually made available to the borrower, which can differ from the stated loan amount if a charge is deducted.