| Posted By |
Message |
kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
|
Spinoff to mortage payment
Ok, let me see if I understand this correctly, if I choose on my own to send 2 payments per month as appose to 1 payment, I may be charged?
Now, if I choose to send lets say an extra $150 to each payment, I may get charged?
Also, what happens if I don't let them now that it is for my principal? We are only having 1 mortage so would that apply?
I know our mortage guy told us we could do two payments per month and we planned on doing so but all this talk about paying extra to do so is scarying me.
|
Posted 1/31/07 10:34 AM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource | Prudential Douglas Elliman Real Estate |
MsMBV
:P
Member since 5/05 28602 total posts
Name:
Me
|
Re: Spinoff to mortage payment
Some mortgages will have an early pay off penalty. The reasoning (from what I was told) is that they make their $$ off of your interest, and if you are paying down your principle then they do not get to collect as much interest.
I would bring these questions to your MB or bank & ask them what your Mortgage states specifically.
|
| Posted 1/31/07 10:38 AM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: Spinoff to mortage payment
It depends on what your loan agreeemnt says - typically there are no charges associated with prepayments.
if you dont indicate its principal only, they will apply a portion to interest and a portion to principal.
if you are doing the "bi-monthly" payments- you probably wont be charged either - but you are loosing $$ in interest that you would gain if you kept that money until your payment was due - i know for my mortgage (BOA), they take the first bi-monthly payment and "set it aside", it doesnt get applied to the mortgage until it totals a full payment.
HTH
|
| Posted 1/31/07 10:38 AM |
| |
|
kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
|
Re: Spinoff to mortage payment
Posted by Meaghan729
It depends on what your loan agreeemnt says - typically there are no charges associated with prepayments.
if you dont indicate its principal only, they will apply a portion to interest and a portion to principal.
if you are doing the "bi-monthly" payments- you probably wont be charged either - but you are loosing $$ in interest that you would gain if you kept that money until your payment was due - i know for my mortgage (BOA), they take the first bi-monthly payment and "set it aside", it doesnt get applied to the mortgage until it totals a full payment.
HTH
Meg, how would I be loosing money in intrerest??? That makes no sense to me
|
| Posted 1/31/07 10:40 AM |
| |
|
PotofLuck06
Our Baby Boy Is Here!!!
Member since 11/06 13241 total posts
Name:
Betsy
|
Re: Spinoff to mortage payment
Kerry - you went with HSBC right? If so, you have no penalties if you close off the mortgage early, so you can relax about that. That was one of our primary concerns before we signed up with HSBC and Scott Finger - the mortgage consultant said that HSBC charges no penalties for paying the mortgage off early.
|
| Posted 1/31/07 10:42 AM |
| |
|
MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
|
Re: Spinoff to mortage payment
Posted by kerrycec03
Posted by Meaghan729
It depends on what your loan agreeemnt says - typically there are no charges associated with prepayments.
if you dont indicate its principal only, they will apply a portion to interest and a portion to principal.
if you are doing the "bi-monthly" payments- you probably wont be charged either - but you are loosing $$ in interest that you would gain if you kept that money until your payment was due - i know for my mortgage (BOA), they take the first bi-monthly payment and "set it aside", it doesnt get applied to the mortgage until it totals a full payment.
HTH
Meg, how would I be loosing money in intrerest??? That makes no sense to me
in interest INCOME - not your mortgage - instead of keeping that first bi-monthly payment in your savings account, you are technically giving the bank the money early - and they set it aside for you - they dont apply it to your mortgage payment (usually) until they get the second bi-monthly payment
|
| Posted 1/31/07 10:43 AM |
| |
|
kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
|
Re: Spinoff to mortage payment
Posted by PotofLuck06
Kerry - you went with HSBC right? If so, you have no penalties if you close off the mortgage early, so you can relax about that. That was one of our primary concerns before we signed up with HSBC and Scott Finger - the mortgage consultant said that HSBC charges no penalties for paying the mortgage off early.
yea, Greg did tell us that (our HSBC mortgage guy). But all these new posts made me concerned.
Betsy, are you guys doing bi-weekly's?
|
| Posted 1/31/07 10:52 AM |
| |
|
aliwnec10
mom of 3 boys
Member since 4/06 11426 total posts
Name:
Ali
|
Re: Spinoff to mortage payment
i'm sure that everyone's is different. But mine... you can make prepayments. But if you do prepay on the WHOLE loan amount in a certain time frame, you are penalized.
So unless you plan on paying off the whole loan in the next 3 years... you should be fine. 
*but double check with your bank since everyone's is different.
|
| Posted 1/31/07 10:55 AM |
| |
|
kerrycec03
Mom of 2 beautiful boys!!
Member since 6/06 13519 total posts
Name:
Kerry
|
Re: Spinoff to mortage payment
Posted by aliwnec10
i'm sure that everyone's is different. But mine... you can make prepayments. But if you do prepay on the WHOLE loan amount in a certain time frame, you are penalized.
So unless you plan on paying off the whole loan in the next 3 years... you should be fine.
*but double check with your bank since everyone's is different.
yea, I'm thinking we so won't pay it off in 3 years unless we try out for Deal or No Deal and win big!! heheh
|
| Posted 1/31/07 11:06 AM |
| |
|
PotofLuck06
Our Baby Boy Is Here!!!
Member since 11/06 13241 total posts
Name:
Betsy
|
Re: Spinoff to mortage payment
Posted by kerrycec03
Posted by PotofLuck06
Kerry - you went with HSBC right? If so, you have no penalties if you close off the mortgage early, so you can relax about that. That was one of our primary concerns before we signed up with HSBC and Scott Finger - the mortgage consultant said that HSBC charges no penalties for paying the mortgage off early.
yea, Greg did tell us that (our HSBC mortgage guy). But all these new posts made me concerned.
Betsy, are you guys doing bi-weekly's?
No, we're getting a monthly mortgage bill that is due the first of each month.
We prob won't add $$ to the mortgage until we get our savings back up to a safe number, but we do plan on paying the principle off over time, so we don't have the house mortgage for 30 years. IL's paid their's off at the 20-25 year mark.
|
| Posted 1/31/07 11:14 AM |
| |
|
