Question 1

How do extra payments affect my loan?

Accepted Answer

Extra payments go directly to principal, reducing the balance on which interest accrues. Even $100 extra per month can save thousands and years on a mortgage.

Question 2

Is there a prepayment penalty?

Accepted Answer

Some loans charge prepayment penalties for paying off early. Check your loan agreement. Most personal loans and mortgages in the US do not have prepayment penalties.

Repayment Calculator — See How Extra Payments Help