In the early years, the monthly payment covers interest due on the loan and a small repayment of the principal balance. As you get closer to the end of the repayment term, the amount of your payment that goes toward interest decreases, and the amount that goes toward repaying the loan principal increases. Unlike other lenders, Premier Lending Corp does not require that your payments include "escrowed" or impounded pro-rated funds for property taxes and hazard insurance.