2006-09-18 14:27:38 · 8 answers · asked by lou2sweet 1 in Business & Finance ➔ Credit
yes you have to pay interest too. the best way to pay more to principle is to pay extra on the day it is due. if you pay your payment and make an extra payment 2 weeks later, you will have to pay interest for those 2 weeks. but if you pay more on the due date, the excess will automatically go towards principal.
2006-09-18 15:06:21 · answer #1 · answered by bella_4624_19 4 · 0⤊ 0⤋
Unless you got an interest free loan. When you make your payment, the majority of the payment goes to interest the rest to the principle. But if you make a payment, and say pay $100 extra, you can tell them that you want that $100 to go towards principle only, which will lower lessen the amount of interest you will pay.
2006-09-22 10:56:05 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Depends on the loan you have.. if you have a loan that requires you pay all the interest for the life of the loan even when you pay off the interest early.. then yes....
Most however.. no early pay off penalty... this meaning you can call your lien holder and get the pay off amount.. this amount will be for the left of principal and an interest due up until a specific date in the future.. so an earlier pay off will save you interest payments..
2006-09-18 14:31:39 · answer #3 · answered by limgrn_maria 4 · 0⤊ 0⤋
If you mean pay the principle early (since you're paying principle with every payment you make anyway), then if your sales contract calls for a pre-payment penalty, that means they intend to collect their interest even if you pay off the car's principle balance early. Read your contract carefully.
2006-09-18 14:30:28 · answer #4 · answered by wynterwood 3 · 0⤊ 0⤋
Usually if you want to make EXTRA payments to principal, alot of finance companies require you either write "For Principal ONLY" on the check or direct it to a different address than the one you send your regulat monthly payment to and often you have to do both.
2006-09-18 15:14:14 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Yes
2006-09-18 14:37:03 · answer #6 · answered by jade60 2 · 0⤊ 0⤋
Yes you have to pay the interest that has accumulated.
2006-09-18 14:29:28 · answer #7 · answered by stlouiscurt 6 · 0⤊ 0⤋
uh..... YES.
The financial institute doesn't give out free money. Unless you financed a new car with the manufacuterer when they offered free interest.
2006-09-18 14:31:05 · answer #8 · answered by tmweber 4 · 0⤊ 0⤋