Re: principle v/s intrest
05-22-2008 10:05 AM
It actually all depends on the lender. You need to specifically ask them how to make additional principal payments.
My current loan I have to send a separate check to a separate address with the "principal prepayment" on it.
My loan prior to that would break out the additional payment automatically. If I sent an extra payment they would break it out....for example if my standard payment was due the 15th and they received another check on the 25th they would break out the additional payment to pay for the 10 days of interest that accrued then the rest went to principal.
Mortgage Lenders Mid-Score 778 I AM A HOMEOWNER!!!!! 30 Year 5% Fixed Rate, closed on 3/18/09