answersLogoWhite

0

Paying more than the monthly amount due on an amortized loan can help you save money on interest and pay off the loan faster. This reduces the overall cost of the loan and can help you become debt-free sooner.

User Avatar

AnswerBot

6mo ago

What else can I help you with?

Continue Learning about Finance

How much finance is required to complete the mortgage amortization?

The amount that is amortized depends on the amount of the down payment and the interest percentage rate. It will vary with those and other factors. A good banker will be able to help calculate the exact figures with you.


What is the minimum monthly payment required for this account?

The minimum monthly payment required for this account is the smallest amount of money that must be paid each month to keep the account in good standing.


What is a good amount to pay on your principle?

The loan provider will set a minimum monthly amount that must be paid. Other than that, you need to check the terms of the agreement to see if you are allowed to pay more than that amount each month. If you double the amount of principle paid each month, you are essentially knocking off a payment at the end of the loan.


The process of finding the present value of some future amount is often called?

It is discounting. Good luck!


Can you buy a home with a low income?

The answer would be yes, depending. A good rule of thumb is to calculate 43% of your gross income. Then, subtract your monthly payments (credit cards, installment loans and such). You'll be left with a figure that should be close to you eligible amount for a total monthly mortgage payment (principal, interest, taxes and insurance). It would be wise to ensure that even if my calculation allows this total monthly payment to be over 31% of your gross income, that you try not to take a mortgage payment over that amount. Many do, but it stretches them financially.

Related Questions

How much finance is required to complete the mortgage amortization?

The amount that is amortized depends on the amount of the down payment and the interest percentage rate. It will vary with those and other factors. A good banker will be able to help calculate the exact figures with you.


What is the minimum monthly payment required for this account?

The minimum monthly payment required for this account is the smallest amount of money that must be paid each month to keep the account in good standing.


Are prepaid cell phones a good gift for teenagers?

For teenagers, prepaid cellphones are a good gift if you are looking to limit their usage. In addition, prepaid phones are often good for teenagers if you are looking for a good introductory phone while they are in high school. If you are a parent, it is also a good idea to use prepaid cellphones to avoid huge monthly charges. It is very common for teenagers to overuse cellphones with monthly minute plans, so having a prepaid amount can help to avoid any surprise bills and one is able to budget accordingly.


Is SBA a good place to get help with a loan?

SBA is a good place to get a loan. They are wiling to work with you and your needs. Almost everyone gets approved, as the amount is determined by how much you make make monthly and yearly.


What services does emusic provide to their customers?

They provide their costumers with a monthly amount of downloads for music. The costumers must subscribe to their service though. It is a good way to legally download music.


What would be the monthly payments on a car finance of 32000 be over 4 years?

The amount for monthly payments on a car financed for $32,000 for 4 years will depend on the rate of interest that is charged. Banks might charge more interest to a person that has good but not excellent credit history.


Is it better to purchase on credit or purchasefor cash?

Cash purchases are better because an individual pays the full amount for a good and might be lucky for a discount where as in a credit purchase the individual tends to pay monthly installments and an amount of interest in every installment


What is a good amount to pay on your principle?

The loan provider will set a minimum monthly amount that must be paid. Other than that, you need to check the terms of the agreement to see if you are allowed to pay more than that amount each month. If you double the amount of principle paid each month, you are essentially knocking off a payment at the end of the loan.


What is a good amount of money to ask for when babysitting?

If you are asked to spend the night when babysitting, the average amount should be over $30.00. If you babysit normally, you should ask for over $5.00 ann hour. A good amount that is used often is, $8.00 an hour.


Can I use a monthly payment calculator to figure out how my employer determines my monthly 401k deduction?

You can use a monthly payment calculator to figure out how your employer determines your monthly 401K deduction. A good site that has a calculator is labpixie.


The process of finding the present value of some future amount is often called?

It is discounting. Good luck!


How much does it cost to get car insurance in Florida for my classic?

If you are looking for decent car insurance, you must supply for further personal information for me to know your monthly payment amount or 6 month policy amount. If you are a good driver, you will get discounts for it, as well as age and marriage status.