Posted on: 16th Sep, 2007 07:27 am
Has anyone heard that if you make a mortgage payment and you pay more than the amount due stating that the extra amount be applied to principal and your mortgage company does not apply it that way then your loan and interest and everything about your loan is all messed up? Well someone told me that if that happens the mortgage may be liable to pay off your mortgage, has anyone else heard this? I am about to sell my house so if anyone knows if there is any truth to this please let me know. Thanks
I don't think I totally understand your question.
1. There can be a prepayment penalty if you pay off a mortgage early.
2. If you pay extra every month your lender does not have to apply that extra money to principle. It all depends on what was in the fine print of your mortgage documents. They sometimes have the right to simply put it in an escrow account until you sell or pay off.
1. There can be a prepayment penalty if you pay off a mortgage early.
2. If you pay extra every month your lender does not have to apply that extra money to principle. It all depends on what was in the fine print of your mortgage documents. They sometimes have the right to simply put it in an escrow account until you sell or pay off.
Hi Guest,
I agree with Livinginnky that if you pay the extra amount, your mortgage company may keep it in the escrow account.
But can you please explain, what you meant when you say that the mortgage may be liable to pay off the mortgage? Please specify your question more clearly.
I agree with Livinginnky that if you pay the extra amount, your mortgage company may keep it in the escrow account.
But can you please explain, what you meant when you say that the mortgage may be liable to pay off the mortgage? Please specify your question more clearly.
