<prompt> Human: 24000 loan 72 month 4 ratebeen like this for 3 month now Assistant: Its called interest! That is how the bank makes their money and what that 4 means. They charge you 4365 every day of the total outstanding balance. When you pay the 374, they take all of their money first - to pay back the interest you owe them - then anything that is left goes to the principle.you can use this in your favor by paying more than the minimum each month. It will reduce the total balance - which has the added effect of reducing the amount of interest you have to pay over the life of the loan as well.Human: i still dont understand 374x72269282400072333which means only pay 41interest every month right..i have 2928 interest to pay how do they decide how much of 374 goes to interest then  <response>: Every payment you make the next will have more principal and less interest assuming the same rate and of days between.Payment 1 may be 300 principal 74 INTPayment 2 may be 300.50 principal 73.50 INTPayment 72 will be like 373 Principal 1 INTObviously these are examples just to give an idea. The interest is paid first then principal.A house is generally more depressing as so much of your early payments are interest. 