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» How Can I Pay As Little Interest As Possible on My Secured Medical Loans?
How Can I Pay As Little Interest As Possible on My Secured Medical Loans?
Posted byABD KADIR Rusdi
Thursday, June 29, 2017
If you have ever taken a loan out, you know the meaning of the word
interest. Many home buyers put their mortgage on a thirty year plan and
end up paying not only the principal or original loan amount, but more
that double in interest.
Borrowing money can be a frustrating thing, and since most of us
can’t pay cash for cars and houses, we get to borrow. There are ways to
avoid paying as much interest as originally planned, and its quite
simple to carry it out.
The first key to paying off your loan principal is understanding
interest. If you have ever looked at a loan calender, or an amortization
chart, you know that you pay much more interest than principal at the
beginning of the loan, than at the end.
Let’s say you have recently taken out a mortgage loan and you’ve been
making payments for a few months now and you get a nice work bonus of
$500. You can either blow the money on a shopping spree or put it
towards the principal of your new home loan.
If you decide to pay an extra $500 on your house payment, it will go
directly to the principal amount of the loan. Therefore you will avoid
paying interest on that $500 for the next twenty nine and a half years.
This will also bump your interest to principal ratio on your side.
You may have heard of making bi-weekly loan payments. Generally
people make a loan payment once each month, or twelve payments over the
course of the year. When you make payments bi-weekly, you will end up
paying thirteen payments over at the end of each year.
That extra payment won’t seem like much as you are paying just a
little bit more each month. If you lender does not offer a bi-weekly
loan program, you cannot just send in your half payments every other
week and call it good, this won’t be accepted.
You can simply make an extra payment each year or you can divide your
monthly payment amount by twelve and pay that much extra each month of
the year. Either way is similar to a bi-weekly payment program.
The result of making just one extra loan payment each year is more
than you might think. If you make that extra payment each year, you will
be able to pay off your thirty year mortgage loan in just twenty four
years instead, a dramatic difference.
If you are just taking out a loan, whether it be for a house, a car,
or another reason, you should consider making a down payment. Some
lenders even require borrowers to make a down payment up front.
If you find yourself taking out multiple small loans for personal
uses, you might consider opening a savings account. Try saving your
money to remodel your kitchen instead of borrowing. You can avoid paying
interest altogether by not having to borrow money from a lender, but by
using your personal savings account instead.
How Can I Pay As Little Interest As Possible on My Secured Medical Loans?4.55ABD KADIR RusdiThursday, June 29, 2017 If you have ever taken a loan out, you know the meaning of the word interest. Many home buyers put their mortgage on a thirty year plan an...