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Alex, Home Buyer in Carlsbad, CA

I have automatic debit set up to pay my mortgage loan with a bank. The bank just instituted a $10 monthly checking account fee? Anything I can do?

Asked by Alex, Carlsbad, CA Fri Feb 11, 2011

I use this checking account ONLY to make my mortgage payments. I don't keep any other money in there, I have another bank for that purpose. Can I transfer my automatic debit to my regular bank to make the mortgage payments, without changing my interest rate on the loan that was agreed when I signed the original direct debit form? I don't want to pay the new monthly fee.

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Answers

8
Yes, just contact the loan servicer for your loan and request a form for ADP.

Happy funding, Rudi
Web Reference: http://www.umboc.com
0 votes Thank Flag Link Fri Feb 11, 2011
The incentive to set up a checking account with the loan bank was so that I could get a slightly lower interest percentage rate on my mortgage loan.

I did contact the loan officer who prequalified me, and he said, well you signed the automatic debit form when you signed up for the loan, so please refer to that agreement to check what the penalties are for breaking it. I haven't had a chance to review it yet, because it's not in front of me.

I don't understand what the difference is between having a direct debit from a different bank? Shouldn't they be able to accept it?
0 votes Thank Flag Link Fri Feb 11, 2011
Oh. That's not good and it is ridiculous. Was there some sort of incentive to set up a checking account with the bank? (trying to figure out why this was done to begin with?) Regardless, I'd call them and explain you don't want to use their checking account anymore, or offer to set up the direct debit with your regular bank. Sorry, I've never heard of this before. Have you talked to your loan officer about it (the person who prequalified you originally)? Maybe they can help? Good luck.
0 votes Thank Flag Link Fri Feb 11, 2011
The bank that started charging $10 fee is the back where my mortgage is. When I signed my mortgage agreement, I also signed an agreement to open a checking account with the same bank and have my mortgage payments withdrawn electronically every month from this account. So what I do, at the end of each month, I transfer the necessary amount from my primary bank to the mortgage bank and they take it out electronically. I don't use the mortgage bank checking account for any other purposes. And now they are announcing that they are starting to charge a $10 monthly fee for an account that used to be free. They only ways to avoid that fee is to have a direct deposit set up or have at least $1,500 in the account at all times. But I don't have any money there, only temporarily to pay the mortgage. This is ridiculous.
0 votes Thank Flag Link Fri Feb 11, 2011
Alex, which bank is charging the $10 fee -- the one where your checking account is, or where your mortgage is?
0 votes Thank Flag Link Fri Feb 11, 2011
I will call the bank and talk to them about it. My question is, can they just say, too bad, you signed the papers and you can't get out of it now. Or, you can get out of it, but we'll have to increase your original mortgage interest rate to a new higher interest rate.
0 votes Thank Flag Link Fri Feb 11, 2011
Why not visit the branch you deal with and speak to the manager, and express your concerns over the new fees, see if they can be waived, etc.
0 votes Thank Flag Link Fri Feb 11, 2011
Call your bank and threaten to close your account (or move your funds to your other bank account). If they refuse, time to switch banks.
0 votes Thank Flag Link Fri Feb 11, 2011
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