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Paying off the principle

Posted by nevea2be (My Page) on
Sat, Feb 24, 07 at 6:58

When you make a mortgage payment and wish to apply extra money towards the principle of the loan do you included it with the original payment or go old school and have a hand written check with "pay towards principle" written in the note section?


Follow-Up Postings:

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RE: Paying off the principle

Writing a separate check may be a PITB, but I think it's the way to go. That way there is no question about what the money is for, and it is easier for you to keep track of that contribution versus the regular mortgage payment.


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RE: Paying off the principle

It's essential to properly and separately identify it. Many lending institutions will otherwise treat it as an early payment, regardless of size, and apply it to both interest and principle.


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RE: Paying off the principle

My mortgage payment slip, chit or what ever it is called, had a space to enter any prepayment on the principle.

Agree it is essential to identify it clearly as toward principle.


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RE: Paying off the principle

Great thanks guys.


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