Posted on: 09th Aug, 2010 12:42 am
From what I've read, we have no restrictions on Prepaying mortgage (no additional fees, etc).
Last mortgage payment, we included our regular amount, plus a prepay for $2500- & checked off the Apply to 'Additional Principal' box.
This month's new home loan statement/bill has accurately subtracted the $2500 from 'Principal Balance' amount.
(They split the $2,500 into two numbers, which confused me at first, but the math is correct.)
But-
We took a 30 yr 'Conventional' mortgage. Our Prepays should have accelerated the loan, so that it's paid off completely about 8 mos earlier.
The 'Contractual Remaining Term' on the last statement is '29 yrs 3 mos'- We took it out 9 mos ago- So, with Prepays, shouldn't the Remaining Term be 8 mos earlier- & the statement read '28 yrs 7 mos'?
(Online Mortgage Calculators show we'll be 'all paid up' 8 mos earlier- making our 30 yr mortage, 29 yrs & 4 mos total)
* Does the fact the $2,500 was deducted from Principal Balance Amt mean we're fine?
This is on our statement, can anyone explain what it means?
'How we post your payment: All accepted payments of principal and interest will be applied to the Longest Outstanding installment due, unless otherwise prohibited by law.'
Last mortgage payment, we included our regular amount, plus a prepay for $2500- & checked off the Apply to 'Additional Principal' box.
This month's new home loan statement/bill has accurately subtracted the $2500 from 'Principal Balance' amount.
(They split the $2,500 into two numbers, which confused me at first, but the math is correct.)
But-
We took a 30 yr 'Conventional' mortgage. Our Prepays should have accelerated the loan, so that it's paid off completely about 8 mos earlier.
The 'Contractual Remaining Term' on the last statement is '29 yrs 3 mos'- We took it out 9 mos ago- So, with Prepays, shouldn't the Remaining Term be 8 mos earlier- & the statement read '28 yrs 7 mos'?
(Online Mortgage Calculators show we'll be 'all paid up' 8 mos earlier- making our 30 yr mortage, 29 yrs & 4 mos total)
* Does the fact the $2,500 was deducted from Principal Balance Amt mean we're fine?
This is on our statement, can anyone explain what it means?
'How we post your payment: All accepted payments of principal and interest will be applied to the Longest Outstanding installment due, unless otherwise prohibited by law.'
Hi russregann,
As far as I can understand, if the $2,500 had been deducted from your principal balance amount, then you don't have to worry about it any more. If you wish, you can contact your lender once again and ask him to explain the whole issue to you in details. This will clear the matter for you.
Thanks,
Jerry
As far as I can understand, if the $2,500 had been deducted from your principal balance amount, then you don't have to worry about it any more. If you wish, you can contact your lender once again and ask him to explain the whole issue to you in details. This will clear the matter for you.
Thanks,
Jerry