Accelerated Payments

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Dictionary Says

Definition of 'Accelerated Payments'

A term associated with making additional unscheduled payments on a loan at predetermined, or random intervals. Making additional unscheduled payments reduces the principal balance of the loan, meaning that more principal and less interest is paid off in subsequent payments. Making accelerated payments will lead to the early pay-off of a loan.
Investopedia Says

Investopedia explains 'Accelerated Payments'

Most loans have an amortization schedule that defines how much principal and interest will be paid with each scheduled payment, so that the loan will be paid-off at the end of an established term. 

Also, the amount of interest paid with each payment is a function of the remaining principal balance of the loan at that time. The higher the rate of interest on a loan, the more beneficial it can be to make accelerated payments. The faster the borrower applies accelerated payments toward the principal balance of a loan, the more interest that is saved.
Search results for

'Accelerated Payments'

  • Be Mortgage-Free Faster

    http://www.investopedia.com/articles/pf/07/acceleratedpayments.asp
    ... of Making Accelerated Mortgage Payments The true benefits of making the accelerated
    payments are measured by calculating what is saved versus what is given up. ...

  • Student Loans: Paying Off Your Debt Faster | Investopedia

    http://www.investopedia.com/university/student-loans/student-loans6.asp
    ... When to Hit the Brakes on Your Accelerated Repayment Schedule Be careful
    of using all your spare dollars for student loan payments. ...

  • CFA Level 1 Study Guide - Global Economic Analysis - Effect of ...

    http://www.investopedia.com/exam-guide/cfa-level-1/global-economic-analysis/monetary-policy-exchange-balance-payments.asp
    ... Long Term Asset Basics; 8.13 Depreciation Accounting; 8.14 Accelerated Depreciation;
    8.15 Natural Resource Assets; 8.16 Effects of Capitalizing ...

  • This ARM Has Teeth

    http://www.investopedia.com/articles/pf/07/arm-reset.asp
    ... accelerated payment option, which will cut down on the term of the mortgage. Option
    ARMs are attractive to some borrowers because of their low minimum payments ...

  • Credit Crisis: What Caused The Crisis? | Investopedia

    http://www.investopedia.com/university/credit-crisis/credit-crisis4.asp
    ... Market As the decline in home prices accelerated, an increasing number of people
    found themselves struggling to make their monthly mortgage payments. ...

  • Reduce Interest With An All-In-One Mortgage

    http://www.investopedia.com/articles/mortgages-real-estate/08/offset-mortgage.asp
    ... a normal bank account, such as an ATM and debit cards, automatic bill payments and
    a ... Assuming that the rate on the accelerated loan stays constant at 6%, it is ...

  • 5 Things You Didn't Know About Life Insurance - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0811/5-Things-You-Didnt-Know-About-Life-Insurance.aspx
    ... beneficiaries after the insured passes away, as long as premium payments are paid ...
    Accelerated Benefit Rider If you should be diagnosed with a terminal illness ...

  • Another Setback For Roche Is Bad News For ImmunoGen

    http://stocks.investopedia.com/stock-analysis/2010/Another-Setback-For-Roche-Is-Bad-News-For-ImmunoGen-IMGN-RHHBY-SNY-BIIB-TEVA-MYL0827.aspx
    ... Already bruised by setbacks in the Avastin franchise, Roche announced Friday morning
    that the FDA rejected an accelerated approval application for T-DM1, a ...

  • CFA Level 1 Study Guide - Derivatives - Interest Rate and Equity ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/interest-rate-equity-swaps.asp
    ... Long Term Asset Basics; 8.13 Depreciation Accounting; 8.14 Accelerated Depreciation;
    8.15 Natural Resource Assets; 8.16 Effects of Capitalizing ...

  • Use Real Estate To Put Off Tax Bills

    http://www.investopedia.com/articles/tax/08/real-estate-reduce-tax.asp
    ... generally use a depreciation method called the Modified Accelerated Cost Recovery ...
    the portion of their mortgages attributable to interest payments on their tax ...

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