I was reading the FAQ from my finance company, and it says any extra payments not mailed to their "Principal payment" center will be applied as regular payments and will count towards next month's payment - in other words, it will advance the next due date. But it says that the payment will be applied towards the principal balance.
You can also mail a "principal only" payment which gets applied to the principal but does not push your next due date.
What's the point of that? Isn't it better to pay down the principal but still have a few months of "safety net" in case you fall on hard times? Unless you make 3 extra payments and then pay nothing for 3 months, aren't you still cutting down on your interest?
You can also mail a "principal only" payment which gets applied to the principal but does not push your next due date.
What's the point of that? Isn't it better to pay down the principal but still have a few months of "safety net" in case you fall on hard times? Unless you make 3 extra payments and then pay nothing for 3 months, aren't you still cutting down on your interest?