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 payoff of a loan.
BREAKING DOWN '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 paidoff 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.

Amortization Schedule
A complete schedule of periodic blended loan payments, showing ... 
Negatively Amortizing Loan
A loan with a payment structure that allows for a scheduled payment ... 
Fully Amortizing Payment
A periodic loan payment, part of which is principal and part ... 
NonAmortizing Loan
A type of loan in which payments on the principal are not made, ... 
Unscheduled Recast
The unscheduled recalculation of the remaining amortization schedule ... 
Standing Loan
A type of loan where payments are made of interest only. Repayment ...

Credit & Loans
What is an Amortization Schedule?
An amortization schedule is a table that shows the amounts of principal and interest that comprise each loan payment. 
Credit & Loans
Mortgage Basics: The Amortization Schedule
By Lisa SmithThe amortization schedule for a residential mortgage is a table that provides a breakdown of the schedule of payments from the loan's first required payment to the loan's final payment. ... 
Personal Finance
Simple Interest Loans: Do They Exist?
Yes, they do. Here is what they are – and how to use them to your advantage. 
Credit & Loans
Understanding the Mortgage Payment Structure
We explain the calculation and payment process as well as the amortization schedule of home loans. 
Credit & Loans
Time To Consolidate Your Student Loans?
Use these strategies to decide whether consolidating your student loans makes sense for you – and what to do next if it does. 
Economics
What Does Principal Mean?
For banks, principal refers to the amount due on a loan, and is used to calculate interest payments. 
Credit & Loans
How Interest Rates Work On A Mortgage
A stepbystep explanation of the interest calculations, mortgage types, and how the loan is eventually "retired" – which means paid off. 
Credit & Loans
10 Ways to Manage Student Loan Debt
How to manage those pesky payments as you embark on adult life. 
Credit & Loans
How Balloon Payments Work
30year mortgage borrowers will typically make equal payments over 30 years until the loan’s principal and interest have been paid. A loan’s interest rates will likely be lower if it includes ... 
Savings
Reduce Interest With An AllInOne Mortgage
"Offset" mortgages combine a checking account, homeequity loan and mortgage into one account.

Why is more interest paid over the life of a loan when it is capitalized?
Learn what it means to capitalize interest on a loan. Understand why more interest is paid over the life of a loan when it ... Read Answer >> 
Why does the majority of my mortgage payment start out as interest and gradually ...
When you make a mortgage payment, the amount paid is a combination of an interest charge and principal repayment. Over the ... Read Answer >> 
How does debt consolidation lower my monthly payments?
Find out how combining your debts into a single debt consolidation loan might actually lower the total amount you have to ... Read Answer >> 
What are the pros and cons of life insurance policy loans?
Find out the pros and cons of borrowing against your life insurance policy to help you decide if this loan type is the right ... Read Answer >> 
Is there any limit on how much I can pay toward my mortgage principal every month?
I understand that I'll be paying more interest and less principal for almost the first half of my mortgage term. I'm ... Read Answer >> 
What are the pros and cons of consolidating my student loans?
Read about the possible advantages and disadvantages of consolidating your student loan debts, and find out how to determine ... Read Answer >>