DownTheAvenue wrote:
....snip....
Check your contract with the bank regarding early pay offs, and discuss with the bank how to handle extra payments. Without care on your part, those extra payments will be applied to future monthly due payments, and although you pay the loan off early, you will pay all the interest as if you paid for the whole term. Sometimes it is just better to make the minimum monthly payment and save up extra money to make a one time large payment to pay off the loan. You can cost yourself many thousands of dollars if you don't do this right.
Is "doing it right" as simple as designating extra payments as "principle" payments?
