additional principal

Is It Better To Pay Principal Or Interest On A Mortgage?

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Is It Better To Pay Principal Or Interest On A Mortgage? Save on interest Since your interest is calculated on your remaining loan balance, making additional principal payments every month will significantly reduce your interest payments over the life of the loan. By paying more principal each month, you incrementally lower the principal balance and

Is It Better To Pay Interest Or Principal On A Loan?

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Is It Better To Pay Interest Or Principal On A Loan? 1. Save on interest. Since your interest is calculated on your remaining loan balance, making additional principal payments every month will significantly reduce your interest payments over the life of the loan. … Paying down more principal increases the amount of equity and saves