Reply to Paying Extra Principal on Mortgage

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Reply to "Paying Extra Principal on Mortgage"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]There is a difference between making a payment early and paying extra principal.  Making my December payment in September does NOTHING to reduce the interest I owe, it just gives the bank my payment early.  Making an extra principal payment reduces the loan balance, so reduces the amount of principal accruing on your loan.  OP is talking about the later.  The PP talking about effective mortgage rates may be confusing these two.[/quote]

some lenders you have to contact to tell extra should go towards principal, their default is to not do it.  Some require you contact each time, others let you make it a standing rule.  Mine does apply to principal automatically but I still check statement to make sure.[/quote]

I think there is some regulation about that. I was paying extra on principal for 2 years and noticed all they did we skip me ahead and say I was just paying in advance. I called them and told them the days it wrong and they very quickly reamoritizrd my loan on the next statement showing thousands and thousands added onto principal as I had intended
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