cancel
Showing results for 
Search instead for 
Did you mean: 

What will be prepayment amount?

tag
Anonymous
Not applicable

What will be prepayment amount?

Why should I pay my prepayment amount of house loan in the middle of the month paying simple interest as prepayment charges on it rather than holding the amount and paying it on the first of next month making prepayment charges zero?

Message 1 of 2
1 REPLY 1
Revelate
Moderator Emeritus

Re: What will be prepayment amount?

Unsure what you are specifically asking but on a simple interest loan interest is accruing on the balance effectively every day.

 

Whenever you make a regular payment to a loan you zero out any currently outstanding interest and then the rest is applied to principal.  When you make this payment doesn't matter that is how it is applied: if there is interest accrued, it gets paid first.




        
Message 2 of 2
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.