Can you make principal only payments thru HDFS?
#3
02-28-2016, 09:21 AM
Outstanding HDF Member
Join Date: Aug 2013
Location: Southern NY, known as Florida
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Its not gouging, its a fee. They would prefer traditional payments. A check does not cost them cc fees. And online processing in mass can lead to data theft
#5
02-28-2016, 09:53 AM
Seasoned HDF Member
this comes up quite regular. hdfs loans are 'simple' interest loans, and interest is computed on a daily basis. if you want to pay your loan down, just add extra into your regular payment amount. the interest will be paid first, then the rest will go to principal. i don't believe that they will do a 'principal only' reduction if you send them a second (or subsequent) payment. but it won't really matter, the loan will be paid off at the same time either way.
as far as paying fees to make a payment, if you set up a recurring monthly payment, there is no fee involved. and you can set up your payment amount to be any amount over the minimum payment amount. i have mine rounded up to the next $50. that alone will reduce my payments due by 6 months.
if you don't want to set up a recurring payment, then use your bank's billpay system. there is no fee (from hdfs) to do that.
as far as paying fees to make a payment, if you set up a recurring monthly payment, there is no fee involved. and you can set up your payment amount to be any amount over the minimum payment amount. i have mine rounded up to the next $50. that alone will reduce my payments due by 6 months.
if you don't want to set up a recurring payment, then use your bank's billpay system. there is no fee (from hdfs) to do that.
#6
02-28-2016, 10:10 AM
this comes up quite regular. hdfs loans are 'simple' interest loans, and interest is computed on a daily basis. if you want to pay your loan down, just add extra into your regular payment amount. the interest will be paid first, then the rest will go to principal. i don't believe that they will do a 'principal only' reduction if you send them a second (or subsequent) payment. but it won't really matter, the loan will be paid off at the same time either way.
as far as paying fees to make a payment, if you set up a recurring monthly payment, there is no fee involved. and you can set up your payment amount to be any amount over the minimum payment amount. i have mine rounded up to the next $50. that alone will reduce my payments due by 6 months.
if you don't want to set up a recurring payment, then use your bank's billpay system. there is no fee (from hdfs) to do that.
as far as paying fees to make a payment, if you set up a recurring monthly payment, there is no fee involved. and you can set up your payment amount to be any amount over the minimum payment amount. i have mine rounded up to the next $50. that alone will reduce my payments due by 6 months.
if you don't want to set up a recurring payment, then use your bank's billpay system. there is no fee (from hdfs) to do that.
I swallow the $3 monthly fee by paying with Credit Card as I get nice rewards that justifies the fee.
#7
02-28-2016, 11:10 AM
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#8
02-28-2016, 12:28 PM
If you want to save money on interest, you need to get your payments ahead. I did this on a personal loan, my payment was $158.xx. So I paid monthly $250.00 and every month I'd get bill for my payment, each month it would be less. Then I started getting bills for $0.00 amount due and I would continue to pay $250.00 and 100% of it was eventually going towards the principal. It takes time, cause your interest is computed daily. Once you get your payments ahead, you basically stopped the interest.
The following 2 users liked this post by Robjr:
Karen Bellavia (01-28-2020),
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#9
02-28-2016, 12:43 PM
Seasoned HDF Member
Keep records of you payments. Those confirmation numbers, date and the amount. Save PDF to a folder labeled appropriately. Read you contract. Some car loans have a fee for paying off early since I would think the interest is on the unpaid balance, not just the payment, so even the notion you are paying off the last payment still implies interest cost. However, it will be less since you are doing the last payment now instead of 3 years from now.
Last edited by Jackie Paper; 02-28-2016 at 12:45 PM.
