I have two years remaining on a personal loan. If I pay off the loan today will I save on the remaining interest?
You absolutely should. Most interest is earned based on a simple interest formula. In general, the principal owed is multiplied times the time the funds are used times the rate of interest. Older loans were under what was known as the "Rule of 78s", and interest was pre-computed. Your state laws can determine exactly what your loan terms and conditions are, but by paying it off early, you should see a savings because you will have two years less use of their money than originally scheduled.
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You absolutely should. Most interest is earned based on a simple interest formula. In general, the principal owed is multiplied times the time the funds are used times the rate of interest. Older loans were under what was known as the "Rule of 78s", and interest was pre-computed. Your state laws can determine exactly what your loan terms and conditions are, but by paying it off early, you should see a savings because you will have two years less use of their money than originally scheduled.