2007-03-24 12:53:47 · 6 answers · asked by Mrs. J 2 in Business & Finance ➔ Credit
Yes, if you specify on the payment that it is to be put against the principal. A lot of lenders will put it in an escrow account if you don't specify because they don't want you paying it down too quickly.
The easiest way to do it is to add and extra 1/12 of your payment to your check each month, again specifying that the extra is to be paid against principal. Not all lenders will accept bi-weekly payments without refinancing, and you will get the most benefit from your extra payments if they are not made at the end of the year.
2007-03-24 13:07:36 · answer #1 · answered by Brian G 6 · 0⤊ 0⤋
If you can make even more than tthat you can get even further ahead, if your loan allows it. Also, it used to be that you must make that payment in a seperate check, not include it with other payments. It must be marked "for principal only" on the memo line. Otherwise it will be applied to interest as well, and not make much difference in the total.
2007-03-24 13:09:45 · answer #2 · answered by Jeanne B 7 · 0⤊ 0⤋
Yes, depending on your interest rate and length of loan. Its a really good idea. If you don't have a whole months payment even 1/2 of one works wonders.
2007-03-24 13:01:01 · answer #3 · answered by Dusie 6 · 0⤊ 0⤋
Yes. Say your payment is 600.00 a month. Send in 650 and it will cause your to pay it off by about 7 yrs early.
2007-03-25 16:44:32 · answer #4 · answered by beth102965 1 · 0⤊ 0⤋
do the math
2007-03-26 16:52:34 · answer #5 · answered by luciousgreeneyedlady 5 · 0⤊ 0⤋
yes my cousin did it :)
2007-03-24 13:09:26 · answer #6 · answered by frogbfound 4 · 0⤊ 0⤋