What happens if you pay early?
For simple interest loans, if payments are paid prior to the scheduled due date, less interest is owed, and the Principal Balance will reduce at a faster rate. Consistently reducing the number of days between payments posting is the key factor in controlling the amount of daily interest charged, giving a better opportunity to have the Principal Balance reduced without the need to send more than the regular scheduled payment amount. If you choose to make additional principal-only payments in addition to the regularly scheduled payment, you will save more interest over the life of your loan.