I guess increasing the EMI per month would be one way. Is there any other way?
2006-09-29 00:09:19 · 11 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
Re-financing or adding more money to each payment
2006-09-29 00:11:04 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you physically need to change the number then refinance and risk wasting money doing that with the paper work.
If you simply want to cut down your loan then make extra payments.... double up on your payments and cut your loan time in half... at no extra cost to you.
I have never had a loan for the allotted amount of time it said in the agreement...I paid off everything early and now I am where I save and pay cash so to save even more by NOT having to pay interest.
HAPPY FRIDAY !!
: )
2006-09-29 10:49:01 · answer #2 · answered by Kitty 6 · 0⤊ 0⤋
Negotiate a lower interest rate and continue to make the same periodic payment, or increase the amount of the periodic payment. Either method will reduce the term of the loan.
2006-09-29 08:44:33 · answer #3 · answered by Adios 5 · 0⤊ 0⤋
Should you choose to pay more money per month than what is required, check the terms of your loan. Some lending institutions will apply any extra payment you send in to the interest, unless you express that you wish to pay on principal. I consider it a dirty practice, but unfortunately many banks and mortgage companies engage in this practice. It's nothing more than a legal form of stealing, in my opinion.
2006-09-29 07:19:57 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The way you reduce the number of years on a loan is to pay the thing off. This ain't rocket science.
I strongly suspect you're talking about a mortgage. You can have it paid off years sooner by switching from monthly to bi-weekly payments. Talk to your banker.
2006-09-29 07:21:39 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Pay additional money on the principal each month... ensure that you tell the lender that is what you are doing/want to do...this will lower the principal which will intern lower the interest... making you able to pay off the loan faster.
2006-09-29 07:18:40 · answer #6 · answered by i_love_my_mp 5 · 0⤊ 0⤋
You can either refinance the loan with a shorter term or make additional payments to principal each month.
2006-09-29 07:33:10 · answer #7 · answered by Anonymous · 0⤊ 0⤋
if the interest on loan is 10%,
i prefer to pay only the minimum amount and use the extra cash to invest in whatever pays more than 10%, so you gain.
2006-09-29 07:27:38 · answer #8 · answered by chp 2 · 0⤊ 0⤋
pay seperate check pay your payment and send seperate check forward to balance
2006-09-29 07:13:26 · answer #9 · answered by Anonymous · 0⤊ 0⤋
by paying more
2006-09-29 10:34:38 · answer #10 · answered by Anonymous · 0⤊ 0⤋