Any payment made on a loan that is more than the required amount. For example if your monthly payments on a lien are $200 dollars and you pay $300 dollars a month, you will effectively be lowering the principal amount thereby reducing future interest payments.

Previous Terms: 1031 Exchange, 1035 Exchange, AARP, Abeyance, Abstraction Principle, Accelerated Amortization, Acceptance Credit, Acceptance of a Bill of Exchange, Accommodation Bill, Accommodation Endorser