May, Home Buyer in Brooklyn, NY

When you send in extra each month on your you stipulate on check that the extra goes toward the principle?...or do they (the bank)...

Asked by May, Brooklyn, NY Fri Nov 23, 2012

just put it towards it?...thank you.

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Gail Gladsto…, Agent, 11743, NY
Fri Nov 23, 2012
I have actually done this at Bank of America, only to find they were putting everything on the interest...for years!!!

I know pay in two checks, one marked interest only and the other marked principal.

It is a great way to shorten the term on your mortgage. I went from 30 years down to 19.

Keep it up, but definitely keep an eye on what they are doing with the money. If you have online access to the payments, look each month to make sure it is going towards your principal.
0 votes
Excellent! advice and clarity on the subject!...thank you for the wisdom of your experience...enjoy your evening.

Flag Fri Nov 23, 2012
Javier Menes…, Mortgage Broker Or Lender, Melville, NY
Fri Nov 23, 2012
Some mortgage statements have a part were you can indicate what you're applying the extra payments to. If it doesn't, you should include a note stating that the additional funds should be applied to principle.

Good luck!

Javier Meneses
NMLS #23130
Senior Loan Officer
Sterling National Bank
1 vote
Claudia Will…, Agent, New York, NY
Sun Jan 6, 2013
Most banks are applying your mortgage payment first, and the excess automatically to your principal.

I would suggest checking with the mortgage department at your bank first. The other option would be to write seperate checks to be sure.
0 votes
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Mon Nov 26, 2012
Good morning May,

When I bought my first home I prepaid additional principal to my mortgage for the first 2 years or so. Back then I had a coupon and I could stipulate on the coupon the additional principal I was paying. Still, my Lender at the time couldn't grasp the simple concept of prepaying a mortgage.

I called each month to verify my additional payment had gone to principal only to discover the Lender was putting the extra cash in my escrow account! It took me about five months until I was able to "train" my Lender to correctly apply the additional cash towards principal. I checked every month thereafter and the additional principal was correctly applied.

If you pay your mortgage online, or by mail, or at the bank in person, no matter how you stipulate the additional principal, you must verify your Lender is correctly applying the money to the principal and not elsewhere.

I hope that helps!

Trevor Curran
NMLS #40140
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
185 Great Neck Rd, Suite 240
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services
0 votes
Wow!...thank you!...I see no matter what! you will have to follow the money! to make sure a simple request is honored! seems as if they want to make that process as hard as they can...and it should be quite simple.

So again thank you for taking time out to make answers to this question...even clearer!.

Sincerely, May.
Flag Mon Nov 26, 2012
Mitchell Fel…, Agent, Brooklyn, NY
Sat Nov 24, 2012
Dear May:

Usually when you send in your mortgage payment you can specify on the portion of the statement you return with your check what the monies in your check(s) should to towards. This can also be done online if you pay your mortgage online.

Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
0 votes
Anna M Brocco, Agent, Williston Park, NY
Fri Nov 23, 2012
Nothing to lose by stipulating principal...
0 votes
Earl Satahoo, Agent, Brooklyn, NY
Fri Nov 23, 2012
Any excess amount from your regular monthly payment goes to reduce your principal-providing that you are up-to-date with your mortgage and escrow.To keep it simple, you may write on your additional check-Principal ONLY.. This a great way to pay off your mortgage faster and save a lot of money.
0 votes
Oh ...thank you have made my question even more clear...I will note that as well...thank you for taking time out to guys must know that you help a lot! of people on here looking for same answers...enjoy your weekend.
Flag Fri Nov 23, 2012
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