Bi weekly mortgage payment letter

[Booner72]

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@sharpie wrote:

When you send in the extra, you need to indicate you want it applied to the principal.

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OK - IDK even who my bank is going to be yet bc it hasn't been sold yet, and if it has, noone has contacted me yet.  I hope it's not BoA based on all the hell I've read about them here!

Anyway, what ELSE would the extra be applied to?  Will I be able to just call them up once they figure out who they are and tell them I'm paying an extra 75 bucks each payment and to apply that to the principal?

[Booner72]

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@sharpie wrote:

All you really need to do is Google "mortgage amortization" and play with a calculator.  You can figure out what a difference any amount will make in time and interest paid.

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Thanks, Sharpie - I did just that.  I can get 5 years off w/ just 75.00 extra a month.  THANKS

[sharpie]

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@Booner72 wrote:

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@sharpie wrote:

When you send in the extra, you need to indicate you want it applied to the principal.

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 I hope it's not BoA based on all the hell I've read about them here!

Myself, when I finally get up the guts to apply for a mortgage, I am only talking to banks who service their own mortgages so it will never have a chance to be sold to BOA.

Anyway, what ELSE would the extra be applied to? 

Who knows?  If it gets sold to BOA, they might apply it to your neighbors overdraft charges or something.  (HA HA)

Will I be able to just call them up once they figure out who they are and tell them I'm paying an extra 75 bucks each payment and to apply that to the principal?

I would recommend putting it in writing each month with the payment.

In all seriousness, committing to paying extra EACH MONTH on your mortgage will save you a TON of money over the lifetime of the loan.  People who handle their money wisely generally do this.  It is a very common practice and one of the smartest financial moves you can make (next to having an emergency fund).  Even if you can't put a significant amount, if you commit to always pay extra whatever you can each month, you will come out ahead.

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[Walt_K]

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@Booner72 wrote:

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@sharpie wrote:

When you send in the extra, you need to indicate you want it applied to the principal.

---

OK - IDK even who my bank is going to be yet bc it hasn't been sold yet, and if it has, noone has contacted me yet.  I hope it's not BoA based on all the hell I've read about them here!

Anyway, what ELSE would the extra be applied to?  Will I be able to just call them up once they figure out who they are and tell them I'm paying an extra 75 bucks each payment and to apply that to the principal?

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I'm pretty sure the default if you don't specify is usually for any extra to be applied to your next payment.  So if you were to send double your payment in without specifying, the next month you wouldn't have to send a payment.  If you did, it would just advance again.  It's probably specified in your loan documents how overpayments are to be handled if you don't specify what to do with it.

As far as how you let them know, if it's set up for you to pay online, it will probably be as easy as putting the amount you want paid exta in the box labeled principal.  If you're actually mailing checks, probably just write it in the memo section.  

[MarineVietVet]

I expect every lender is a bit different but Chase gives me 2 ways online to pay extra principal. The first example is for a one time payment in addition to my regular payment and the second is to set up automatic monthly payments to go to just principal.

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[Booner72]

Wow - you guys are really helpful.  I got the letter in the mail that tells me the bank after this post.  (kinda weird).  Wells Fargo.  Better than BoA so I'm happy.

Anyway, I am extremely happy with Academy Mortgage and the results I got from the loan officer I was lucky enough to get.  I don't care that the loan was sold.

I don't have much of an emergency fund which I know makes me a financial loser - but I am definitely commited to paying the extra each month on the mortgage.

[sharpie]

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I don't have much of an emergency fund which I know makes me a financial loser - but I am definitely commited to paying the extra each month on the mortgage.

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I am a lifelong financial loser, however my goal is to no longer be one by the time I die.   Which hopefully is a ways off since I have a long way to go.

[Booner72]

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@sharpie wrote:

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I don't have much of an emergency fund which I know makes me a financial loser - but I am definitely commited to paying the extra each month on the mortgage.

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I am a lifelong financial loser, however my goal is to no longer be one by the time I die.   Which hopefully is a ways off since I have a long way to go.

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You can be my new BFF then, Sharpie!  Losers United.

[incognitony]

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@Booner72 wrote:

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@sharpie wrote:

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I don't have much of an emergency fund which I know makes me a financial loser - but I am definitely commited to paying the extra each month on the mortgage.

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I am a lifelong financial loser, however my goal is to no longer be one by the time I die.   Which hopefully is a ways off since I have a long way to go.

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You can be my new BFF then, Sharpie!  Losers United.

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Sign me up.

[drkaje]

Sallie-Mae is notorious for paying people ahead. I was finally able to have labels printed for checks saying (acct number, loan number and do not put account in paid ahead status) in hopes of preventing this. Instructions were to make payments online and then send paper checks with instructions.

The check just cleared but I don't want to ruin a holiday weekend by finding out they screwed it up again, LOL! I'm tired of calling every month but giving up would let them win.