Posted on: 16th Jan, 2012 12:08 pm
I have a 5.25% 15 year mortgage from about 2001. Several times a year I pay an additional $500 to $1000. I recently noticed that the maturity date is not changing online. I can see the principal change whenever I make an extra payment. I asked the lender when the maturity date will change and they said it will only change if I make a full 13th payment. I have no desire to pay that extra interest. Does that sound correct?
Hi sailor!
Welcome to forums!
As far as I know, additional payments can affect the payoff date and the amount paid to interest and principal over time. You should contact a real estate attorney and he will guide you further in this regard. You can contact your lender and even ask him to clarify your queries.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As far as I know, additional payments can affect the payoff date and the amount paid to interest and principal over time. You should contact a real estate attorney and he will guide you further in this regard. You can contact your lender and even ask him to clarify your queries.
Feel free to ask if you've further queries.
Sussane
You need to keep track of your amortization schedule the mortgage companies post and updates after each payment. Make sure your payments states "PRINCIPAL PAYMENT ONLY", then have an attorney ready to file suit of damages.
:idea:
:idea:
all this attorney nonsense? Curtailments (extra principal payments) are relatively common and routinely CORRECTLY credited. If you want to waste money on an attorney, you might consider what yopay an attorney towards the principal balance.
Not a bad idea to keep a running figures on your principal balance yourself. Very simple calculation you can follow on a hand calculator or, better yet, Excel or the Open Office equivalent. Calculate the monthly interest amount on the prior month balance and subtract P&I amount to geprincipal application. Then subtract curtailment to get ending balance and repeat process next month.
The maturity date is in the mortgage deed, i.e., written in stone. With curtailments your loan will be paid in full prior to the maturity date and with the spreadsheet approach you can project exactly when. No idea where this 13th payment came from; perhaps the person was thinking bi-weekly mortgage and even thencorrect.
Not a bad idea to keep a running figures on your principal balance yourself. Very simple calculation you can follow on a hand calculator or, better yet, Excel or the Open Office equivalent. Calculate the monthly interest amount on the prior month balance and subtract P&I amount to geprincipal application. Then subtract curtailment to get ending balance and repeat process next month.
The maturity date is in the mortgage deed, i.e., written in stone. With curtailments your loan will be paid in full prior to the maturity date and with the spreadsheet approach you can project exactly when. No idea where this 13th payment came from; perhaps the person was thinking bi-weekly mortgage and even thencorrect.