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Paying the Principal Only amount

Jb11
Established Member

Paying the Principal Only amount

Hi all,

 

I have a question regarding Principal only loan payments to my Auto Loan.

 

I have made two payments to my loan each one I paid the DUE amount.  I also included two more payments for PRINCIPAL ONLY.  When I went to check my statements with my Bank online, only one statement showed in the description as a Principal payment the other description showed as a general payment.   I call my bank and asked why that happened.  In short they said it doesn't matter if you make a principal only payment, due to the fact that any EXTRA cost paid to the DUE amount gets allocated to the Principal. I told him that the statement should reflect that and in fact that only one did.  He had no answer but the one he previously told me, which was it goes to the principal regardless. 

 

I'm thinking of calling the loan department again and hoping to get someone else and see what their explanation is. 

 

ANyone have any thoughts if this is how it is done with Auto loans? 

Message 1 of 5
4 REPLIES 4
StartingOver10
Moderator Emerita

Re: Paying the Principal Only amount

How are you making your payments, online?

My online auto account with Chase has a separate field for principal payments and I can only make a principal payment simulatenously with the regular payment. I can't make it another day. If I make it another day, then it just pushes out the next payment due date - as if I made an early payment.

 

Yes, call back and speak to another rep to see if s/he can walk you through the process.

Message 2 of 5
ezdoesit
Valued Contributor

Re: Paying the Principal Only amount


@StartingOver10 wrote:

How are you making your payments, online?

My online auto account with Chase has a separate field for principal payments and I can only make a principal payment simulatenously with the regular payment. I can't make it another day. If I make it another day, then it just pushes out the next payment due date - as if I made an early payment.

 

Yes, call back and speak to another rep to see if s/he can walk you through the process.



+1 That is exactly how my chase payments are also.

Message 3 of 5
electra
Established Contributor

Re: Paying the Principal Only amount

I just got my paperwork for my Navy Federal Loan and noticed that it has a section about prepayment which says:

 

"If you pay off early, you will not have to pay a penalty. You must pay all accrued unpaid interest and other charges and fees due before a payment is applied to a loans principal."

 

So...maybe check your loan paperwork to see specifics.



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Message 4 of 5
Jb11
Established Member

Re: Paying the Principal Only amount

I'm with BofA and I am paying Online.  When using the Bill pay section there is no Option for Principal only, however if I go to Transfer funds there is the option for Principal only.  So essentially I am making two separate payments,  I will call the bank today and speak with them again to clarify.  I will update when I find out.

Message 5 of 5
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