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If your lender allows it, you can make additional payments directly toward the amount of money you borrowed — the principal — which can help you pay off your loan faster. By carefully considering the benefits, drawbacks, and alternatives, you can make an informed decision about whether this strategy aligns with your financial goals. Does it make sense to only pay the principal on your mortgage

Principal Payment - Overview, Types, Sample Calculations

Read more to find out if this is right for you. Principal is the amount of money that you originally borrowed or the remaining amount of the loan that you still owe, excluding interest.