A borrower can use a loan calculator to determine how much interest he has to pay on a loan, according to Bankrate. Loan calculators use the beginning balance of the loan, the maximum and minimum monthly payments, and the annual percentage rate to determine how much a person is likely to pay over the life of his loan.
A borrower can lower the amount of interest he has to pay over the life of his loan by improving his credit score as much as possible before applying for a loan, notes The Nest. Borrowers with low credit scores are deemed high risks and are more likely to have to pay more in interest than borrowers with high credit scores. Three credit reporting bureaus offer consumers free credit reports once a year.
Borrowers who are currently paying off loans have options for lowering their interest rates as well, according to The Nest. A borrower can contact his lender to see if his lender would be willing to reduce his interest rate. This is a good step for borrowers who have paid their bills and loan payments consistently and on time. Asking a lender for a lower interest rate is also a good strategy when interest rates are trending down.