In my case, the loan amount is that high, a little over $100K. Let’s say if I pay off half of 100K, I still have to pay the same monthly payment for my original loan at $100K. Then I will have two payments: the monthly payment for $100K at 7% and the new payment for 50K. Roughly speaking my monthly payment will increase 50% right away. Granted, this will speed up my payoff schedule but I got a cash flow problem on my hand by doing this.
