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Been reading this thread and now am curious. How does one pre-pay interest charges?
Have a mortgage and make extra payments each month. I know the loan papers state "the dollar amount the credit will cost me (finance charge)", but thought my extra payments were being applied to the principal amount, which in turn, reduces the total finance charge over the life of the loan. Can the mortgage company apply part of the extra payment to interest that has NOT yet accrued on the balance of principal owed??
Curious paws,
Rose
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