Talk:Principal balance
 | This article is rated Stub-class on Wikipedia's content assessment scale. |
I borrowed $550,000 interest only loan for a term of 20 years. Since I have extra earnings now, I can pay more than the required monthly payment. Is there penalty in case I pay and finish the term earlier than agreed. By paying extra, will the interest gradually get reduced on the balance or will they calculate the interest based on the original borrowing?