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If your lender allows it, you can make additional payments directly toward the amount of money you borrowed — the principal — which can help you pay off your loan faster. You can make a principal only payment via any of our automated systems every 24 hours. When you get a loan, your monthly payments primarily consist of principal and interest

As a general rule, making extra payments just toward the principal balance can help you pay off a loan faster and reduce the overall cost of the loan You remain responsible for making timely payments as they become due Do large principal payments reduce monthly payments?

Learn more about principal payments.

Doing so can help you pay off the loan early and save you money overall For example, say you have a $400,000 mortgage with a 6% interest rate and $2,398.20 monthly payments. Principal only payments will reduce your unpaid principal balance only and will not be applied toward past due amounts or payments that are currently due or will become due in the future

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