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    mailman01's Avatar
    mailman01 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 16, 2014, 06:15 PM
    Making extra payments
    If I make extra payments will it pay it off sooner?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #2

    Nov 16, 2014, 10:00 PM
    What type of loan, where is it at? What are the terms about early payoff in the loan documents.

    In some cases, it will save on interest, in other cases not. Of course if you pay more off principle, or additional payments early, it will be "paid off" sooner, a loan is an issue of a number of payments.

    Whether of not, it will save any money, depends on type and terms of loan
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Nov 17, 2014, 07:49 AM
    Generally the answer would be yes.. But more specifics about the debt might help us help you.
    joypulv's Avatar
    joypulv Posts: 21,591, Reputation: 2941
    current pert
    		  
    #4

    Nov 17, 2014, 08:13 AM
    Back in the days of high mortgage rates (~16%), I remember it was popular to set up payments for every two weeks, 27 times a year (instead of 24), which effectively added a month and a half's worth of payments to a year, and cutting the mortgage length and total amount significantly.

    It was even more common to pay a 13th month at the end of the year, especially if you needed the interest deduction on your taxes.

    BUT the lender has to agree, and paying extra now doesn't get you a cushion to fall back on if you think you can get away with not paying down the line.
    J_9's Avatar
    J_9 Posts: 40,298, Reputation: 5646
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    #5

    Nov 17, 2014, 08:33 AM
    Depending on the loan, it can even hurt you to pay it off early.

    You didn't give us details, so we can't give you adequate answers.
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