Does anyone know anything about advance payment.

I have a 15 year loan.

Last month, I paid enough to cover 2 months, they still expect me to pay this month. Is this common mortgage practice in North Carolina?

11/18/2005 3:51:12 PM

Thats common practice everywhere. You are still expected to pay each month as long as you carry a balance. The more you pay in advance, then the quicker you pay off the loan....but its comes off at the end, not the next month.

11/18/2005 3:53:21 PM

i'm pretty sure that's a common practice everywhere... the extra that you are paying goes towards your principle, which in the end lowers the amount of interest you end up paying...

11/18/2005 3:54:03 PM

I don't remember it being like that when we were in Boston. But then again, I wasn't paying it myself.

11/18/2005 3:54:38 PM

you did not pay for 2 months.

they think you paid 1 month + extra against the principle.

11/18/2005 4:00:26 PM

that's common practice everywhere. you don't pay in advance unless you specify that the extra is going towards the principle.

11/18/2005 4:01:17 PM

yep, the extra payment just went towards the principle.

not a bad thing.

11/18/2005 4:02:35 PM

oh well

11/18/2005 4:04:20 PM

With my mortgage, any and all payments must be sent separately with the appropriate stub for the month. Theoretically, I could pay my entire year off in advance, but I'd have to send in 12 separate payments.

As everyone else said, what you did went toward your principle.

11/18/2005 4:05:27 PM

Oh well. I don't care looks like I owe them money today!

11/18/2005 4:07:27 PM

All my payments are drafted.

metavante.com

11/23/2005 7:28:31 PM

alias

11/23/2005 7:31:13 PM

11/24/2005 10:22:31 PM

I don't think the word "CarlyAnne" and the word "serious" can be used in the same thread.

11/24/2005 10:24:07 PM

If you are so financially successful (as mentioned in many threads) why do you even have a mortgage? I would think that someone as rich as you would be able to buy the house up front.

11/24/2005 10:39:30 PM

Quote :

"oh well"

don't be sad - this is a good thing. With your mortgage, you have to think long term. If you pay 2 months worth of principle in one month, then you essentially skip the next month's interest payment. But that doesn't mean that next month you don't pay anything - you just pay the amount that's required the month after next. If you were to consistently pay 2 months of principle every month, your mortgage would get paid off in 1/2 the time and save thousands in interest.

11/25/2005 1:22:51 AM

^ to expand on that further, you can look at some hypothetical amoritizaion schedules (which you should be very familiar with if you have any type of loan).

The first schedule here should be simple - you borrowed 1860 for a 12 month loan, and you're paying back in $310 monthly installments.

Month Prin Int.
1     100  210 = 310
2     110  200
3     120  190
4     130  180
5     140  170
6     150  160
7     160  150
8     170  140
9     180  130
10    190  120
11    200  110
12    210  100
Total 1860 1860 = 3720

Due:                 You Pay:
Month Prin Int.      In Mth. Prin.          Int.      Tot
1     100  210       1       100(1)+110(2)   210(1)  = 420
2     110  200       2       120(3)+130(4)   190(3)  = 440
3     120  190       3       140(5)+150(6)   170(5)  = 460
4     130  180       4       160(7)+170(8)   150(7)  = 480
5     140  170       5       180(9)+190(10)  130(8)  = 500
6     150  160       6       200(11)+210(12) 110(11) = 520
7     160  150       Total   1860            960     = 2820
8     170  140
9     180  130
10    190  120
11    200  110
12    210  100
Total 1860 1860

11/25/2005 2:59:05 AM

Loans are for losers. Real people buy shit.

11/25/2005 3:46:38 AM