Any specific procedure to pay more on mortgage?

[RadioFanatic]

or do you simply add more to the payment? We have automatic withdrawal as our bank also has our mortgage, but how would you recommend paying more each month?

 

[brymolmom]

We pay extra and just add in about $150 extra on the auto-payment every month. We have gotten those 'offers' in the mail saying for $300 setup charge - you can send in payments every other week to save $$ long term. not sure why (unless someone NEEDS the bi-weekly thing for the scheduling) anyone would pay extra for it. Just call your mortgage company to ensure that any extra in the payment automatically goes toward PRINCIPAL, and then add extra to your payment. That "should" be all you need to do.

 

[Gr8t Fan]

As the others have said, we have the extra amount automatically drafted with our regular payment but we made arrangements with the bank before we started to make sure the extra is applied toward the principal balance only.

 

[swilshire]

You could also just write them a check once in a while. That way you can choose to send any amount you can spare.

Sheila

 

[cglaura]

This is a nice site, you can put in your mortgage details, then put in amount you would prepay, and how often, and it will tell you how much interest & time off the loan you will save.

You can also view an amortization table that will show you where your balance will be at any given time (select view by month radio button on the bottom).

http://www.financialpowertools.com/mortgage_calculator/

 

[BrightScouter]

We have a Heloc that is autodrafting each month. Unfortunately, if we pay an extra payment, the autodraft will be for that amount less than normal at the beginning of the next month. We have had to change to paying the full payment plus whatever extra we want to pay on our own through our online banking. Not a big deal, but something to watch for.

Our mortgage lender (MetLife) gives you the option to pay biweekly and pay it off early. But, they charge a set up fee of about $300 and a an extra fee out of each payment. Not worth it. Better to pay extra on your own.

 

[CherylA]

I just pop into a branch of my bank once a month and write a check for the extra amount. I can only do it once my mortgage has been paid. If there is a payment due on the mortgage then I can't write a check toward principal. I have to be very careful to tell them to apply it to the principal and then verify with them when they give me the receipt that they did indeed apply it to principal.

 

[Cheshire Figment]

The bank where I have my checking account also has my mortgage. They do automatic charge on the 5th of each month against one of my checking accounts. I also have set up for an automatic transfer monthly on the 3rd of each from a checking account to the mortgage. They put the transfer first into a suspense account, and then a cople of days after they post the regular payment they then apply the addiitonal payment to the principal.

 

[woodkins]

If I pay by mail the payment coupon has a line for the payment and then another line for additional principal. If I pay online there is a section for the payment amount and another section for additional principal.

 

[Lisa loves Pooh]

It has to in some way be dedicated and marked "extra to principal only" otherwise, you are at the mercy of the lender to apply it as they wish and they don't (to my knowledge) undo "prepaid" interest payments.

 

[DisneyCowgirl]

Make sure you indicate appropriately (your lender might have a procedure) that it is to be applied to principal. Otherwise they might (probably will) just apply it towards your next payment and it won't do you any good.