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Payday and Extra Loan Principal

November 15th, 2019 at 04:38 pm

Today is payday, and my paycheck is received via direct deposit. My checking account balance this morning after my cash withdrawal was $2,454.54. From this, I need to subtract my sinking funds transfer ($230) and my dentist bill ($393.40, charged to Citi double cash MC yesterday) and then leave 1k in checking. That means there is $831.14 available.

I logged on to my bank account and transferred $831.14 to my 5th wheel loan. I have calculated the interest due* and updated my spreadsheet and my sidebar. I will check in a few days to see if my calculation is correct or if I need to adjust.

*Bank of the West deducts accrued interest first from any payment, then applies the remainder to principal. This is not as advantageous as what I have previously experienced, that interest is paid only from the regular payment and any extra payment is applied 100% to principal.

My final payment date is now 4/3/31, 6 months ahead of schedule.

4 Responses to “Payday and Extra Loan Principal”

  1. Amber Says:

    Awesome job on knocking the loan down

  2. Lucky Robin Says:

    Doesn't it feel great to get the payoff date closer and closer?

  3. Petunia 100 Says:

    Thank you, Amber.

    Lucky Robin, yes, it certainly does!

  4. rob62521 Says:

    Way to go!

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