Important Service Disruption:
For more information on the Zero Interest Portion (ZIP) of your loan, please review our list of frequently asked questions below:
You can make a one-time payment towards the ZIP in several ways:
Your billing statements and NBT Online Banker account show the original amount of the ZIP payment for your loan and the Maturity Date. You will also receive maturity notices starting 8 weeks prior to the maturity date, which will detail how much you need to pay by the zip maturity date to keep your current monthly payments.
Prior to the ZIP maturity date, your prepayments will apply to the principal of the loan, reducing your loan interest over the term of the loan. On the maturity date, your prepayments will apply to the ZIP of your loan.
If you do not pay the ZIP prior to its maturity date, your monthly payments may increase. ZIP maturity notices will be sent to you starting from 8 weeks prior to the maturity date. A potential monthly payment increase amount is provided as an example for a borrower who has similar loan terms and original ZIP balance when they do not pay ZIP prior to its due date.
Prior to the ZIP maturity date, your payments will apply to the principal of the interest bearing loan, reducing the interest you pay over the term of the loan, saving you money. The month following your ZIP maturity your additional payments will be reflected in your monthly Statement or eStatement as an addition to your Interest Bearing Loan and a subtraction from your ZIP Loan. This will appear on the Online banker the day after the maturity date.