paying down a loan quicker?

[Tas S.]

Hi everyone,

I have 3 houses in Memphis and I'd like to bring down the payments on one of my houses quicker. Can I pay towards just principle as a separate payment or will it just count as an extra normal payment? I've heard both but wasn't sure which was true, if that makes sense.

Thanks,
Tas

[Douglas Skipworth]

Hi, @Tas S.  

Great question and congrats on wanting to pay down your debt!

In my experience, most lenders will automatically apply any extra money as a principal reduction if you're "current" that month (ie, the normal monthly principal and interest payment has been made).

As @John Horner suggested, it'd be best to talk to your lender directly to confirm what they do.

Best wishes to you on your journey to real estate investing success!