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Step 1Here's a comprehensive guide to reducing total loan costs:
Step 2: Make Extra Payments
- Example calculation: $$\text{Extra Payment} = \frac{\text{Monthly Principal}}{\text{Loan Term}} \times 1.5
- Apply additional funds directly to the principal balance - Reduces total interest paid over the loan's lifetime
Final Answer
Reduce loan costs by making extra payments, choosing shorter terms, improving credit, refinancing, and consolidating loans strategically.
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