loan lingo

[slowngreen]

What its called on a loan if you can pay two months at a time so the next month there wont be anything due?

 

[griff7373]

Not sure of the lingo but you need to clarify to the bank that the extra payment is not to go to the principal but to pay the loan ahead a month.

 

[slowngreen]

Ok thanks. I'm able to do this on a loan through Sheffield but not through Wellsfargo. My dad is thinking about financing some on a new bike through honda and was just curious if this would be possible and the guy didnt seem to understand what we were asking...

 

[griff7373]

Normally unless using a coupon book any extra payment goes towards the principal not the next months payment.

 

[slowngreen]

Alright thanks. Really like being able to pay ahead a month or more at a time.

 

[Greywolf74]

Its up to the loan holder whether or not they'll do a double payment like that. Typically anything paid extra will go to the principal as Griff said. Honda would have to figure out who is going to carry the loan on the bike and then contact them and ask them if they allow a double payment like that. IDK if theres an actual word for that but i do know its up to the loan holder. I've tried that before.

 

[tmaxxfreek]

Make sure they isnt any penalties or fees for paying early.........

 

[SMaxxin]

If he has good credit there's no reason to deal with anyone that has a penalty for paying early or extra!

 

[Greywolf74]

If he has good credit there's no reason to deal with anyone that has a penalty for paying early or extra!

This is true

 

[slowngreen]

Well thought Id share the info. I was right that sheffield still does this. Honda Powersports do this too IF you specify with the extra payment what you want it to go to, the next month or off the end. So thats good news. We are unemployed for the winter usually so being able to pay a few months ahead and not have to worry about those months is nice.