Repaying a Loan Early?

[Deleted User]

If you've got a loan, and you pay it early, are you paying off just the remaining capital (plus an early redemption fee), or are you paying every penny you would have paid anyway, plus the fee on top?

CLAPTON

billbennett wrote: »

If you've got a loan, and you pay it early, are you paying off just the remaining capital (plus an early redemption fee)?

yes you are doing just that

Wutang_2

In "Monopoly", what makes the "Super Tax" so super

Awesome

MoneyMagic01273

billbennett wrote: »

If you've got a loan, and you pay it early, are you paying off just the remaining capital (plus an early redemption fee), or are you paying every penny you would have paid anyway, plus the fee on top?

You will generally be paying only the remaining capital plus any advertised early repayment charges.

Phone the loan company for a final settlement figure which they will give you. You won't have to pay it there any then, you can ask for a settlement figure any time you like and it is usually valid for a short period of time (they'll tell you how long this quoted figure is valid) and they should be able to tell you how any early repayment charge is calculated and how much it is in your case.

It is still usually worth paying a loan off early if you can as any charges usually amount to less than paying interest on the full term of the loan.

If you want to, you can compare the settlement figure you are given with the total of the remaining loan repayments. The difference will obviously give you the amount you will be saving yourself!