I recently took out a home equity loan to pay off some credit card bebt. I would like to make double payments each month to pay off the debt early. Since I will take off the interest each year on my taxes would it be better to just make double payments or make one payment and pay the other payment toward the principle only?
2007-04-14 09:13:24 · 3 answers · asked by Phillip J 1 in Business & Finance ➔ Taxes ➔ United States
If you make a double payment, then ALL of the 2nd payment comes off the principle. See, the thing is, you won't be paying any interest with that 2nd whole payment at all, so more just comes straight off the principal. Better check with your Mortgage Co. first though, sometimes they charge a "Penalty" for such things.
2007-04-14 09:19:25 · answer #1 · answered by John R 2 · 0⤊ 0⤋
If you pay extra, any extra will go toward principal. Talk to your lender about this.
2007-04-14 14:25:34 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
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2007-04-14 09:16:33 · answer #3 · answered by Mart1n 2 · 0⤊ 1⤋