What would happen to my monthly payments if I paid off 95% of my loan… would the payments reduce and run until the contractual end date or would my payments stay the same and the end time reduce?
TIA
What would happen to my monthly payments if I paid off 95% of my loan… would the payments reduce and run until the contractual end date or would my payments stay the same and the end time reduce?
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The payment would be the same until the loan is paid off, which would happen sooner.
The payment would stay the same and end early.
Assuming you mean a personal loan or car loan, payments stay the same, there’s just fewer of them as the loan gets paid off much quicker.
If you mean a credit card or other loan where the minimum monthly payment is figured as a percentage of the remaining balance, the minimum monthly payment would get less.
If you mean a mortgage, you often have the option to recast (meaning the payment gets less for the original remaining time) or just pay as before, paying it off much sooner.
TLDR, depends on the loan.
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