My accountant takes care most of my bills but I specifically told her not to pay this mortgage. I sent my check to the lender to pay my mortgage, only to find out later my accountant paid for it too. Both had cashed yesterday. So I was wondering if the extra is going to my principal, or will lender allow it to be deducted towards the next month's payment? It's such a big amount I don't want it to go to my principal... oh no.
2006-12-02 05:35:08 · 7 answers · asked by e p 1 in Business & Finance ➔ Renting & Real Estate
Unless you tell the lender what to do with the funds, they usually just dump any extra into your impound account. It does NOT let you off the hook for your next month's mortgage payment, though!
Call your mortgage lender and ask them what was done with the extra funds. If they put it in your impound account they should be happy to return it to you. The worst case scenario there is that they'll settle it up with you on the annual reconciliation.
If they put it against principal you probably won't be able to get it back. That's not necessarily a bad thing though, as you just shortened your mortgage term by several months! A single extra payment paid against principal early in the life of a mortgage can knock 6 months or more off the life of the mortgage easily. (And if you doubled up on every payment (P&I only) you'd pay off a 30 year mortgage in about 9 years!)
2006-12-02 05:49:25 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
I'd call your lender up and ask them if you can use the double check to go towards next month's payment. I am sure they won't have a problem with it. If this is your home and not an quick investment, I can't understand why you would be sad to pay the interest and more of the principal down now, unless you don't have the cash for next month. Paying the most you can up front will save you a lot of money in the end. That interest will just keep adding up if not.
2006-12-02 05:47:04 · answer #2 · answered by delyanks 2 · 1⤊ 0⤋
Most lenders will put it towards the principal balance. I've never heard of a lender letting you skip a pymt. I've normally only see that in like personal loans and auto loans. Why do you need an accountant anyways? It is propbaly much cheaper to be on an auto payment than paying an accountant. Plus if you did an autopay with your mortgage it will save you on interest, and you will not have to worry about paying it twice.
2006-12-02 06:06:54 · answer #3 · answered by prettybrowneyes 2 · 1⤊ 0⤋
It often depends on the lender. usually an overpayment would be put towards the principle, but an on the ball lender might realize this was a clerical error. Either way, it should be a simple matter of calling your lender and getting it straigtened out now, rather than waiting for the next statement to find out.
2006-12-02 10:19:06 · answer #4 · answered by triad_historic_homes 2 · 0⤊ 0⤋
Call them up. They might be able to work with you... but i know with car payments they take it off the amount you owe... They don't count it towards the next month's payment.
2006-12-02 05:46:43 · answer #5 · answered by Anonymous · 0⤊ 0⤋
i might call your old very own loan business organisation and be certain in the event that they despatched fee to your city for the real property taxes. Then, additionally call the recent very own loan business organisation to confirm in the event that they paid it besides. in case you stumble on that 2 funds have been made, you may call the city to make certain in the event that they are going to reimburse it to you or save on with it in the direction of your next fee. additionally, clarify which you have elected to have your taxes escrowed by your very own loan business organisation and ask for techniques to get the overpaid volume returned.
2016-10-17 14:59:47 · answer #6 · answered by ? 4 · 0⤊ 0⤋
"YOU'RE RICH B____" - Dave Chapelle
2006-12-02 05:42:24 · answer #7 · answered by Answerer 7 · 1⤊ 2⤋