Loan Payment???

[kristenrice]

I checked the member website today and saw that our loan information for our HHI add-on is now listed. I guess this means that it closed?

Anyways, our monthly payment was "quoted" at $49.08/month with the 10-yr financing. The loan info reflects this (correct term, correct rate) but it says that the monthly payment is $79.83.

When I checked the amortization table, it shows that the first payment is $79.83 and then it is $49.08 every month thereafter. Do they just put the "balloon"/"leftover" payment on the first one instead of the last one?

I am a little confused...and I need to make sure that I have the right amount deducted from my checking.


And in regards to making extra principle payments, what does this statement mean? I cannot wrap my brain around it...

Your payment toward Principal must be no less than $10 and $50 less than your Remaining Principal.

I get the part about the payment amount being no less than $10, but the rest has me confused.

 

[stmize]

that is what they did to us when we bought at OKW. Our first pmt was the higher amt and then the next mo it went to the lower amt. hope this helps

 

[drusba]

Your mortgage and interest on it begin as of date of closing. However, you do not make first payment until a month and usually longer after closing. Thus, for example if you closed mid-February and your first payment is April 1 that payment must be enough to cover the usual payment for April and an additional amount for interest during the additonal days from closing to April 1. In other words, the first payment usually covers more than a month. They are not "ballooning" in amounts due at the end but charging you for amounts due from date of closing.

You cannot make an extra principal payment if at the time you try to make it the amount you pay would leave less than $50 total in principal due. Essentially what they are telling you if that if you reach that stage you have to call and arrange to pay all of it off and end the loan.

 

[kristenrice]

Your mortgage and interest on it begin as of date of closing. However, you do not make first payment until a month and usually longer after closing. Thus, for example if you closed mid-February and your first payment is April 1 that payment must be enough to cover the usual payment for April and an additional amount for interest during the additonal days from closing to April 1. In other words, the first payment usually covers more than a month. They are not "ballooning" in amounts due at the end but charging you for amounts due from date of closing.

You cannot make an extra principal payment if at the time you try to make it the amount you pay would leave less than $50 total in principal due. Essentially what they are telling you if that if you reach that stage you have to call and arrange to pay all of it off and end the loan.

Thank You!

This makes sense since it says that our first loan payment will not be deducted until June 1.

And thanks for explaining that other statement too. I plan on making extra principal payments at least twice a month so this is good to know.

 

[jngwright]

I'm sure you know this, too, but if you chose to pay your annual dues monthly-they will be higher this year, as well. I thought annual dues were prorated from our closing date, but they aren't, so our monthly payment is higher for the remainder of the calendar year. Just FYI We are learning as we go, right??