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What happens when I pay more than my regular monthly payment?

When you pay more than the total amount due, the extra amount is applied to your principal balance, which may reduce the amount of interest you pay over the life of the loan. If the extra amount is large enough it will advance your due date up to three months. Advancing a due date means pushing out your next payment to the next month or a future month.

If you do not want your due date advanced, visit How do I make a principal-only payment?

Example 1
Your regular monthly payment is $300. You pay $400 for your January payment, which means you overpaid by $100. The extra $100 is applied to your principal balance. Your required February payment will decrease by $100, which means your required February payment will be $200. Even though your next required payment is less than the regular amount due, you can still pay the regular monthly payment, or more, if you would like to.

Example 2
Your regular monthly payment is $300. You pay $600 for your January payment, which means you overpaid by $300 (one full payment). The extra $300 is applied to your principal balance. Your February payment is covered by the extra amount, which means your due date advances. Your next required payment will be in March. Even though your due date advances to March, you can still send in a February payment if you want.

When you pay more than the total amount due, the extra amount is applied to your principal balance, which may reduce the amount of interest you pay over the life of the loan. If the extra amount is large enough it will advance your due date up to three months. Advancing a due date means pushing out your next payment to the next month or a future month.

If you do not want your due date advanced, visit How do I make a principal-only payment?

Example 1
Your regular monthly payment is $300. You pay $400 for your January payment, which means you overpaid by $100. The extra $100 is applied to your principal balance. Your required February payment will decrease by $100, which means your required February payment will be $200. Even though your next required payment is less than the regular amount due, you can still pay the regular monthly payment, or more, if you would like to.

Example 2
Your regular monthly payment is $300. You pay $600 for your January payment, which means you overpaid by $300 (one full payment). The extra $300 is applied to your principal balance. Your February payment is covered by the extra amount, which means your due date advances. Your next required payment will be in March. Even though your due date advances to March, you can still send in a February payment if you want.

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