Fixed Loan extra payments

Discussion in 'Loans & Mortgage Brokers' started by Triton, 22nd Mar, 2020.

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  1. Triton

    Triton Well-Known Member

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    8th Sep, 2017
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    Vic
    Hi, quick question.

    I have a CBA 2 year interest only fixed term loan with 13 months to go, with monthly commitment of 1200.

    I believe that CBA allows extra 10K repayments for each year of the fixed loan term without incurring early termination fee.

    If I take advantage of this, can I pay off my fixed term sooner (in ~2 months time), assuming I pay 10K for the first year (finishing end of this month) and 10K next month., or does the extra repayment simply make the principal less?
     
  2. wylie

    wylie Moderator Staff Member

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    Your fixed term is just that... fixed.
     
  3. Morgs

    Morgs Well-Known Member Business Member

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    Extra repayments are extra repayments over and above your loan schedule... paying more won't bring forward the expiry
     
  4. Triton

    Triton Well-Known Member

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    Vic
    Got it, so it will bring the principal down?