Cam i make additional payment on my mortgage?

Q: Should I make extra payments to the principle or as an additional payment on a mortgage?

Nandakishore, Ahmedabad

31st August 2018

Home Loan in Motera, Ahmedabad

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Toward the beginning of the loan the measure of interest you pay every month is a lot higher than the measure of the head. This is because toward the start you actually owe a great deal of your head so your advantage installments are higher. Over the long run as you pay down your home loan head the sum you pay toward interest continuously goes down. When you arrive at your last installments they are generally going toward the head with simply a little part going toward the interest. This cycle of offsetting the head and interest every month to keep your installments at a consistent sum is called amortization. Visit Shriram city & Apply for a loan with the lowest interest rate.

Kumar Mahajan, Mumbai

15th July 2021

Comment

Paying a little extra every month on your home loan is a way to make that dream a reality faster than you thought, and with todays historically low savings rates, it could make more sense than ever. It is a good idea to lower you interest rate as well as principal amount.

Devank, Bangalore

7th September 2018

Comment

Hello Nandakishore,
Making a large early payment on your mortgage will reduce the amount of interest you pay on your loan. You will have a smaller loan balance, and interest is charged against your loan balance, so you will pay less. Over many years, this will result in significant savings - especially if you are in the early years of a long-term loan like a 30-year mortgage.

Hitesh, Gurgaon

7th September 2018

Comment

Yes you can. It is more beneficial if you make these payments go directly to the principal on your loans. This should be part of your debt payment plan. It seems to be a very straightforward process, but there are things you can do with your bank to make sure that the extra money you are paying is helping you pay off the loan as quickly as possible.

Shenoy, Ghaziabad

7th September 2018

Comment

Yes, you can make extra payment to the principle loan amount. When you pay extra payments directly on the principal, you are lowering the amount that you are paying interest on. It can help you pay off your debt much more quickly. Some loans will take the extra payments you make and apply them to the interest that has accrued since your last payment, and then to the principal amount of the loan. Other banks will give you the option of applying the entire amount directly to the principal of the loan no matter when you make it.

Prava, Delhi

7th September 2018