Posted on: 12th Aug, 2011 04:44 pm
I have a interest only loan that i want to pay extra on the princple only, what will that do to my interest payment
Hi howaboutit,
You should contact your lender and pay extra money toward your principal. This will help you in reducing your principal amount. I didn't understand what you exact;y wanted to mean by "what will that do to my interest payment". Please explain.
Thanks
You should contact your lender and pay extra money toward your principal. This will help you in reducing your principal amount. I didn't understand what you exact;y wanted to mean by "what will that do to my interest payment". Please explain.
Thanks
If you pay doen the principal, each month you do that, less interest will be owed the following month.
In such situations, most, not all, lenders adjust your interest payment due the next month to a smaller amount due becasue the principal balanc is less.
There is an occaisional lender that keeps your payment due the same.
Call the 800 customer service number of your lender and ask if the payment is adjusted if you pay extra toward the principal.
In such situations, most, not all, lenders adjust your interest payment due the next month to a smaller amount due becasue the principal balanc is less.
There is an occaisional lender that keeps your payment due the same.
Call the 800 customer service number of your lender and ask if the payment is adjusted if you pay extra toward the principal.
