Paying extra on loans

tater03 · #1 (**permalink**) 03-30-2007, 04:20 PM

Just thought I would throw this out there because I made this mistake before on a loan. If you opt to pay more on your loan make sure you let them know it is on the principle of the loan. I paid almost a whole extra payment one time and did not specify this and they just tacked it onto my next months loan payment which is not what I was looking to do.

Mark A · #2 (**permalink**) 03-31-2007, 12:16 AM

This really depends on the institution though, sometimes those principle payments can be tied with fees that make it a better bet to apply it to the next month's payment.

tater03 · #3 (**permalink**) 03-31-2007, 11:16 PM

Well that is true. But it wasn't the case where I had my loan. I just wish I would have known this before I did it. Oh well, you live and learn.

brian · #4 (**permalink**) 04-03-2007, 02:37 PM

Also watch out for overpayment fees - some lenders will charge a fee if the loan is paid off quicker, so take care to ask about that before signing up as well.

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