Typically when you make a manual payment on a mortgage it will give you a couple options, including “regular payment” and “principal only.” The former will go toward your next regular payment, so if your standard automatic payment is $1000 and you pay $2 manually, your next automatic draft would be $998.
Typically when you make a manual payment on a mortgage it will give you a couple options, including “regular payment” and “principal only.” The former will go toward your next regular payment, so if your standard automatic payment is $1000 and you pay $2 manually, your next automatic draft would be $998.
Ok so what’s the difference between putting it towards principal vs interest?