Lump Sum Payment Question

[TagsMissy]

Morning all,

I want to put down a lump sum toward my Aulani contract but have a question ((we paid off BLT pretty much as soon as we got home from vacation where we purchased so this is the first time I'm dealing with an actual loan with DVD)) -- I have 2 options of payments I can make and I don't know the benefit of one over the other?

In the monthly payment section I can select up to 6 mos of payments to pay off today with a pull down list..

Additionally below the monthly payment section there's an option to to put a value toward the Principal where you fill in the blank with the $ value you want to pay.

What's the benefit of doing one over the other? Colour me confused!

 

[erionm]

In the monthly payment section I can select up to 6 mos of payments to pay off today with a pull down list..

The way I read it, this would make x number of payments by CC and change your next due date to be after those payments.

Additionally below the monthly payment section there's an option to to put a value toward the Principal where you fill in the blank with the $ value you want to pay.

This would apply only towards principal and not affect when your next payment is due.

 

[maburke]

The way I read it, this would make x number of payments by CC and change your next due date to be after those payments.

This would apply only towards principal and not affect when your next payment is due.

I would agree. The second option would not put off your next monthly payment, but it would decrease the amount that is going to interest, and your payments would end sooner.