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    Extra mortgage payment

    For those making extra principal payment towards their mortgage, are you sending 1 check or 2 checks. My credit union advised I send them two checks beginning and middle of every month. I never thought of sending 2 checks but my new lender admits sometimes 'they lose checks' often don't apply to 2nd to principal. I also don't want to give my lender access to our bank information since they are also a collection agency. Any advice?
    Last edited by tripods68; 01-03-2016, 09:03 PM.
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    #2
    Don't think I'd be dealing with a lender that occasionally loses checks.

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      #3
      1. I'd get rid of a lender who admits to losing checks.

      2. I pay the mortgage online, once a month. The payment screen has a field for extra principal payments so I just fill in the extra amount there and it always gets credited properly.

      3. People still pay by check?
      Steve

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        #4
        I just do one payment online every month. Current lender does not have a way to mark where I want the excess to go but the extra amount always gets applied to principal.

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          #5
          Originally posted by tripods68 View Post
          I also don't want to give my lender access to our bank information since they are also a collection agency. Any advice?
          If you send them a check, don't they have access to your bank information? It's all on the check.

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            #6
            Sounds like they really do not want to accept extra mortgage payments.

            For extra principal payments, you may want to send a large check on a quarterly basis IF the extra monthly payments do not work out. And follow up with them as many times as needed to ensure they apply the payment as intended.

            If you have the option for an online account, set that up and pay that way instead. It might be easier to manage extra principal payments.

            if you're really concerned about them knowing your financial account info, set up another bank account where you can put a certain amount of money in to cover your payments; that way they won't have access to your real savings/checking accounts.

            Good luck with the new lender - I know you just refinanced with them in the fall so hopefully this doesn't derail your plan for aggressive payoff.

            Good Luck!

            Comment


              #7
              Originally posted by MonkeyMama View Post
              I just do one payment online every month. Current lender does not have a way to mark where I want the excess to go but the extra amount always gets applied to principal.


              This was my method before I refinanced. Make 1 payment with additional principal payment included and had no trouble.

              I do bill payment with my credit union.
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                #8
                Originally posted by Jluke View Post
                Sounds like they really do not want to accept extra mortgage payments.

                For extra principal payments, you may want to send a large check on a quarterly basis IF the extra monthly payments do not work out. And follow up with them as many times as needed to ensure they apply the payment as intended.

                If you have the option for an online account, set that up and pay that way instead. It might be easier to manage extra principal payments.

                if you're really concerned about them knowing your financial account info, set up another bank account where you can put a certain amount of money in to cover your payments; that way they won't have access to your real savings/checking accounts.

                Good luck with the new lender - I know you just refinanced with them in the fall so hopefully this doesn't derail your plan for aggressive payoff.

                Good Luck!
                I'm just going start slow--until I get comfortable with new my lender. Make the normal payment with extra principal (small) for January which is set to go out today. Next month, I'll make first payment in beginning, and 2nd payment middle see to see which works better.
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                  #9
                  Originally posted by tripods68 View Post
                  I do bill payment with my credit union.
                  Does the lender not offer online payment?
                  Steve

                  * Despite the high cost of living, it remains very popular.
                  * Why should I pay for my daughter's education when she already knows everything?
                  * There are no shortcuts to anywhere worth going.

                  Comment


                    #10
                    Originally posted by disneysteve View Post
                    Does the lender not offer online payment?
                    Yes they do. But the lender is also a collection agency. I won't be providing them my bank info because of this.
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                      #11
                      Originally posted by tripods68 View Post
                      Yes they do. But the lender is also a collection agency. I won't be providing them my bank info because of this.
                      How did you decide to use this mortgage company? It sounds like you don't trust them.
                      Steve

                      * Despite the high cost of living, it remains very popular.
                      * Why should I pay for my daughter's education when she already knows everything?
                      * There are no shortcuts to anywhere worth going.

                      Comment


                        #12
                        Originally posted by tripods68 View Post
                        Yes they do. But the lender is also a collection agency. I won't be providing them my bank info because of this.
                        Then you should be doing bill pay from your bank. You provide your bank info each and every time you send them a personal check. When you do bill pay, your bank deducts the amount from your account then sends their own check to your payee.

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                          #13
                          Originally posted by disneysteve View Post
                          How did you decide to use this mortgage company? It sounds like you don't trust them.
                          Our loan was sold to this lender as the service provider. I don't think we have no recourse since it was disclosed to us during closing. The only way to get rid of this lender is we refinance again, or our gets resold to another lender.
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                          www.mo-moneyman.com

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                            #14
                            Duplicate. Just ignore.

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                              #15
                              Originally posted by tripods68 View Post
                              I never thought of sending 2 checks but my new lender admits sometimes 'they lose checks' often don't apply to 2nd to principal.
                              If they are so incompetent that they lose checks, they should not be in the mortgage business. Either that, or they are running a pretty shady operation and should be investigated.

                              Regardless, this does not make them look good and you have reason not to trust them. Have you considered refinancing? I would look into getting away from that lender.

                              Originally posted by tripods68 View Post
                              I also don't want to give my lender access to our bank information since they are also a collection agency.
                              What difference does it make that they are a collection agency? Just because they are a collection agency, it does not allow them to draft your account on a whim. If you are current and not in default they cannot do anything like that.

                              This may be an indication that you do not trust them. Reason to look into getting away from them!
                              Check out my new website at www.payczech.com !

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