Extra Repayments or Additional Repayments
Extra funds paid into the loan over and above the minimum repayment. Additional repayments will reduce the principal of the loan. Most loans will allow you to redraw these extra repayments. Always check to see if there are fees or minimum or maximum limits on Extra Repayments.
Try our Debt Reduction Calculator to see the value or Extra Repayments.
Pro Tip: If you have any funds available in other accounts it is always a clever option to use these funds as extra repayments. Interest on your mortgage is calculated every day. Reducing the balance whenever possible is a great way to save thousands and pay off your loan faster. See also Offset Account.