Question Details

	Username: BobM Rating: Asked to: Chaoxiang Lee Date Created: 28 Sep 2015
Category	28
Tag	Financial
Question	What are accelerated payments?

Advice from Guru

Hi BobM,

A term associated with making additional unscheduled payments on a loan at predetermined, or random intervals. Making additional unscheduled payments reduces the principal balance of the loan, meaning that more principal and less interest is paid off in subsequent payments. Making accelerated payments will lead to the early pay-off of a loan.

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