This form is a sample letter in Word format covering the subject matter of the title of the form.
Loan Payoff Form With Extra Payments In King
State:
Multi-State
County:
King
Control #:
US-0019LTR
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
Ideally, you want your extra payments to go towards the principal amount. However, many lenders will apply the extra payments to any interest accrued since your last payment and then apply anything left over to the principal amount. Other times, lenders may apply extra funds to next month's payment.
The quick answer to your question is "yes." Like any business transaction between two parties, it's possible for a borrower to approach a lender with such a proposal. Whether or not the lender will accept or not depends upon a number of factors: i) what's the financial situation of the borrower...
By applying the overpayment to your principal, you can reduce the amount of interest calculated on each month's principal balance. The more quickly your principal balance is reduced, the faster your interest costs will fall. Over 20 to 30 years, you can save thousands of dollars in interest costs.