Paying lump sums on financing

[fantasiaphil]

I am a bit confused as to how this works, my job changed recently, and I now recieve fairly regular bonuses.
Can I pay these towards my financing, and if yes does that mean that the monthly payments get lower, or that they stay the same and the term gets shorter.

 

[TheRustyScupper]

1) Mortgages and car loans are "front loaded" with interest.
2) Payments made to principle, do not affect the payment.
3) The extra goes to principle and effectively shortens the term.
4) Simple interest loans will have payments affected.
. . . If you want to reduce principle, do it early in the loan cycle.
. . . Early has the maximum effect on interest reduction.
. . . Late in the cycle, all it does is reduce principle.
. . . Much if the interest has been paid by 2/3 of the loan period.

NOTE:
This is not to say do not make extra payments.
It is ALWAYS beneficial to pay early and reduce your debt.
Make sure you mark the check "Principle Payment".
If not marked, the bank assumes advance monthly payments.

 

[fantasiaphil]

Many thanks for the swift response.