u/Bubbly_Appearance_23

Hello! I’m looking at a financing option (12-month term), and I expected na bigger drop sa interest with a higher downpayment since ang loan amount is significantly lower, but the difference is very small lang.

• 25% DP → 17.34% total interest
• 50% DP → 16.69% total interest
• Difference: about 3.75% less interest

Even though the DP gap is large, yung interest barely changed.

Is this because they use a flat or add-on interest system instead of being based sa remaining principal?

Would appreciate any insights from y'all. TIA