topic Re: Principal only payment in Personal Finance

Principal only payment

NC84 — Wed, 06 Nov 2019 17:20:01 GMT

I noticed on the penfed site that I can't make a principal only payment on my consolidation loan . Is this a con of having this type of loan? I was hoping to pay it off sooner and save money on interest.

Re: Principal only payment

Anonymous — Wed, 06 Nov 2019 17:57:29 GMT

Not familiar with Penfed, or their Loan policies. However, most Loans should have the option to pay down the principle by paying any amount over your regular payment. On rare occasion though some Lenders will not as they want all that interest, which is why they loaned the Money.

Example:

Loan payment is $325, you pay $1,325, and the $1K over should be applied to the principle.

Personally I would just call them and dicuss the issue, and how it works there. Some banks require you to call in to make principle payments.

Re: Principal only payment

Girlzilla88 — Wed, 06 Nov 2019 18:04:32 GMT

I agree if it is ONE loan usually an amount over goes to the Principal but some places like stated do require you call to make those type of payments or you have to make them a seperate way. If it is a Few and you are trying to apply principal to a specific one sometimes they require you to set up which one you want the principal to apply to if you pay over the payment otherwise it may go to all of them evenly.

Re: Principal only payment

Anonymous — Wed, 06 Nov 2019 20:36:23 GMT

PenFed REQUIRES you to call customer service in order to realize payments above your monthly payment amount. I.E. principal only payments.

Re: Principal only payment

calyx — Wed, 06 Nov 2019 20:40:06 GMT

You may just have to call in, as it could vary by company.
My CU doesn't allow principal payments online, I have to go into the branch or call in to get it done.

I had an autoloan in the past where I had to send in a separate payment. It's just YMMV with banks.

Re: Principal only payment

Anonymous — Mon, 05 Oct 2020 05:26:41 GMT

Thank you! I just got a PenFed personal loan and want to pay extra towards principal. Everything I could find says paying extra just pushed out your next payment. This just saved me. Calling to make extra principal payments 😁