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[–] kurfu 0 points 4 points (+4|-0) ago  (edited ago)

The interest you pay is a percentage of what you owe. As you pay off the principal, the amount of your monthly payment will gradually be less for interest, and more for principal.

If you want to get ahead more quickly, you can always pay more than the monthly required payment. I think I saved a few months on my last car loan by making half a payment every two weeks, instead of one payment per month. (works out to 13 full payments per year)

Not sure why you interest payment would jump so high in the third month, though.

[–] [deleted] 0 points 2 points (+2|-0) ago 

[Deleted]

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[–] kurfu 0 points 2 points (+2|-0) ago 

Well, most of it anyway. The smaller the amount you still owe, the less they charge you in interest each month.

This might help: https://en.wikipedia.org/wiki/Amortization_schedule