A payment by a borrower of more than the scheduled principal amount due in order to reduce the remaining balance on the loan.

Definition A payment by a borrower of more than the scheduled principal amount due in order to reduce the principal. This also enables the borrower's future interest payments to be reduced.

money paid to the lender in addition to the established payment amount used directly against the loan principal to shorten the length of the loan.

An additional principal payment made towards the principal balance of a loan. This can enable the borrower's future interest payments to be reduced. In amortized loans, such as most mortgages and [..]

An additional principal payment is made towards the principal balance of a loan. This enables the borrower's future interest payments to be reduced. Most of the early payments go toward principal [..]

A payment made by a borrower of more than the scheduled principal amount due. You might do this if you want to more quickly reduce the remaining balance owed.

A way to reduce the remaining balance on the loan by paying more than the scheduled principal amount due.

A way to reduce the remaining balance on the loan by paying more than the scheduled principal amount due.

A payment made by a borrower of more than the scheduled principal amount due, in order to reduce the outstanding balance on the loan, to save on interest over the life of the loan and/or pay off the loan early.