2006-08-09 04:01:53 · 17 answers · asked by birdlady 1 in Business & Finance ➔ Personal Finance
Actually less than half since your entire second payment goes toward the princial of the loan.
2006-08-09 04:05:14 · answer #1 · answered by MadMaxx 5 · 0⤊ 0⤋
Actually paid off a little sooner. Most of a loan payment for the first few years go to cover the interest. When you doule pay you cover the interest and reduce the amount of the principal that you will have to pay interest on. So it takes less time to pay off the loan
2006-08-09 04:07:03 · answer #2 · answered by gunfan69 2 · 0⤊ 0⤋
Actually even faster, but when making extra payment make a note with the extra payment that it should go towards the principle. This way you'll pay the loan off faster, if you do not inform them that you want the extra payment to go towards the principle then it will go towards the interest and that won't help you.
2006-08-09 04:07:46 · answer #3 · answered by captianpr 4 · 0⤊ 0⤋
Oddly enough you can even reduce your total by paying half the amount, but twice monthly (or twice per payment period).
Any payment you send in they will first take out the interest, and ALL of the remainder will go against principal (previous answer is totally wrong).
If you have MS Excel, you can make it print out complete amortization schedules for the whole run of your loan.
2006-08-09 04:06:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes, it will be paid off in 1/2 the time or less because of interest.
Look into if the extra payment for each month goes to principal only or if you have to specify that in writing. Because paying on principal only reduces your orginial debt amount, thereby reducing the interest charged on that amount. You don't want to be chasing your tail by making 2 payments on mostly interest.
2006-08-09 04:17:55 · answer #5 · answered by ht_butterfly27 4 · 0⤊ 0⤋
Probably less than that since you will be paying off principle instead of interest with the second payment, leaving less of a balance to accrue interest. Be careful though, some loans carry a prepayment penalty that makes you pay more if you pay it off early.
2006-08-09 04:06:01 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You must state that the additional amount is to be applied to Principal or the SOB's will take it as an interest payment.
2006-08-09 04:06:08 · answer #7 · answered by Anonymous · 0⤊ 0⤋
from personal experience if you pay extra on your payments then YES you will pay off in less time, and essentially if you pay double the minimum payment then Yes youll pay it off in aproximatly half the time.
2006-08-09 04:05:57 · answer #8 · answered by foxy 2 · 0⤊ 0⤋
Ussually sooner. The first payment pays mostly interest. The second paymet will be all principal.
2006-08-09 04:05:07 · answer #9 · answered by BigPappa 5 · 0⤊ 0⤋
It will cut out more than half the time because you won't have to pay as much interest
2006-08-09 04:05:11 · answer #10 · answered by ĵōē¥ → đ 6 · 0⤊ 0⤋