Quantcast
Channel: Bogleheads.org
Viewing all articles
Browse latest Browse all 5214

Personal Finance (Not Investing) • Extra payment to prinicipal or interest>?

$
0
0
How can the payment be 100% interest? The only "interest due" would be what is due at the time of the payment. Are you sure that the principal is not also reduced with each payment?
...
The payment is not 100% interest. It's a regular future payment. Lenders (some/most lenders anyway) allow making future payments ahead of time so that then you won't have another payment for a while. It's a pointless feature IMO but they allow that and some forum members posted they did that for one reason or another, so I guess there is some customer demand for this feature.

Sounds like that's what happened to OP while that was not their intent.

Also sounds like OP's mortgage's lender/servicer has atrocious user interface for making payments.
Fold with highly variable income might prefer to “push” the next payment down the road

Statistics: Posted by bradpevans — Wed Sep 25, 2024 6:23 pm — Replies 27 — Views 1370



Viewing all articles
Browse latest Browse all 5214

Trending Articles