dragknee66 Posted September 5, 2007 Report Share Posted September 5, 2007 I like to put extra money towards my payments each month.. Should I just make the REQUIRED payment to that amount, and then a seperate payment aside from that marked "PRINCIPAL ONLY"? I heard this was a good thing to do. Anyone? Quote Link to comment Share on other sites More sharing options...
thorne Posted September 5, 2007 Report Share Posted September 5, 2007 Depends on the loan terms. Some banks have penalities for early pay offs. I know on my monte carlo it just shows me like 1 payment ahead right now. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted September 5, 2007 Report Share Posted September 5, 2007 It's best to send a separate payment and mark principal only on the payment stub and on your check. I do this on my home mortgage and have never had a problem. The paper trail is very simple to pull up should there ever be a question then too. I like to put extra money towards my payments each month.. Should I just make the REQUIRED payment to that amount, and then a seperate payment aside from that marked "PRINCIPAL ONLY"? I heard this was a good thing to do. Anyone? Quote Link to comment Share on other sites More sharing options...
OSUGT Posted September 5, 2007 Report Share Posted September 5, 2007 It's best to send a separate payment and mark principal only on the payment stub and on your check. I do this on my home mortgage and have never had a problem. The paper trail is very simple to pull up should there ever be a question then too. Agreed. If you have a payoff penalty, this amount should be clear as it is the difference between your balance and "today's payoff" Maybe switch to an online account with your lender and make electronic payments? Quote Link to comment Share on other sites More sharing options...
dragknee66 Posted September 5, 2007 Author Report Share Posted September 5, 2007 Yes I make electronic payments on it now.. should i just send in CHECK form my extra payment instead maybe marked???? My loan has no penalty for early payoff nope Quote Link to comment Share on other sites More sharing options...
Akula Posted September 6, 2007 Report Share Posted September 6, 2007 My bank automagically applies the extra to the principal. Quote Link to comment Share on other sites More sharing options...
Putty Posted September 6, 2007 Report Share Posted September 6, 2007 Always make the required payment and a sep payment for principle. Works best that way. Quote Link to comment Share on other sites More sharing options...
Mojoe Posted September 6, 2007 Report Share Posted September 6, 2007 To cover yourself, make that extra payment separate. The best thing to do is talk to the lender and see how they apply it to the account. Banks don't all do things the same way. And there should never be a pre pay penalty on a car loan after 12 months. Quote Link to comment Share on other sites More sharing options...
dragknee66 Posted September 6, 2007 Author Report Share Posted September 6, 2007 thanks fellas. I will just go ahead and make seperate payments. Ill just send them in with my own writing on there just for written record. Quote Link to comment Share on other sites More sharing options...
LJ Posted September 7, 2007 Report Share Posted September 7, 2007 on my mortgage it is interest only for 10 years, but i pay the normal mortgage price every month to pay down some principle, i have the interest only because if things are ever tight all I have to do is pay the much lower interest payment, plus the interest amount goes down every month, it's pretty cool. But where I am headed with this is that I always make an extra payment for the principle amount separate because they may take it as an extra payment rather than a principle payment Quote Link to comment Share on other sites More sharing options...
03spydr Posted September 7, 2007 Report Share Posted September 7, 2007 Depends on the loan terms. Some banks have penalities for early pay offs. I know on my monte carlo it just shows me like 1 payment ahead right now. If your bank is doing it this way, you are still paying the same amount in interest as if you would just pay the correct amount. The bank is just sitting on your money until the following statement date and making money off of the gift you gave them. Quote Link to comment Share on other sites More sharing options...
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