Question regarding new mortgage payment...

**Michelle68** · 01-10-2012, 11:20 PM

A couple of weeks ago, we refinanced our mortgage with a new lender (our credit union). We now have a 10 year mortgage at 3.125%. (Woohoo!

) Unfortunately, as far as I can tell,our new mortgage company does not offer online payments, which we were taking advantage of with our last company to pay down our mortgage quickly. I'd like to pay off our mortgage in 4-5 years. How would we go about letting the new company know that we want the amount to go toward principal reduction only when we send extra money each month??

**Natalia** · 01-11-2012, 02:36 AM

My mortgage payment is automatically withdrawn from my account each month. When we signed the papers, i asked for the 25 year mortgage and to pay the monthly cost of a 15 yr mortgage ( in case of dire straits i would not be locked in to the higher poymt). Since then it has all come out as requested. Your financial institution should do the same.

**rachelj** · 01-11-2012, 08:53 AM

If you are sending in an extra check, write it on the space on the bottom left. Or we have written a note to attach to the payment.

**Greebo** · 01-11-2012, 09:00 AM

Originally Posted by Michelle68

A couple of weeks ago, we refinanced our mortgage with a new lender (our credit union). We now have a 10 year mortgage at 3.125%. (Woohoo!

) Unfortunately, as far as I can tell,our new mortgage company does not offer online payments, which we were taking advantage of with our last company to pay down our mortgage quickly. I'd like to pay off our mortgage in 4-5 years. How would we go about letting the new company know that we want the amount to go toward principal reduction only when we send extra money each month??

If you have to mail checks, are they giving you coupon books to send in with the checks?

**McD** · 01-11-2012, 09:09 AM

When you say that they don't offer online payments, do you mean they don't offer payment options through their website?

With our old mortgage company, we always submitted our payment through our bank's online bill pay. When we set up the new bill to be paid (company name, address, account number, etc.) it gave us the option to include a note with the payment. We typed in 'apply any extra to principal' and we never had an issue with them correctly applying funds.

**khaski** · 01-11-2012, 09:36 AM

Originally Posted by Greebo

If you have to mail checks, are they giving you coupon books to send in with the checks?

We get a coupon booklet each year to send in each month, and it includes spaces to write in extar towards princ, escrow etc. I also always make a note on the check itself how mjuch is extra towards pric. so it can't be argued.

**jettsmom** · 01-11-2012, 02:11 PM

You could always make copies of the payment slip and send it in with the extra payments or just attach a note.

I used to send extra payments to my credit card and would attach a note to the check. That before there was online banking.

**Michelle68** · 01-11-2012, 04:03 PM

Originally Posted by Greebo

If you have to mail checks, are they giving you coupon books to send in with the checks?

I assume they are. (They told us they would.) We just haven't received them yet.

**Michelle68** · 01-11-2012, 04:07 PM

Originally Posted by McD

When you say that they don't offer online payments, do you mean they don't offer payment options through their website?

With our old mortgage company, we always submitted our payment through our bank's online bill pay. When we set up the new bill to be paid (company name, address, account number, etc.) it gave us the option to include a note with the payment. We typed in 'apply any extra to principal' and we never had an issue with them correctly applying funds.

You know, I didn't think of that. Our credit union does have online billpay. (Which we use.) I imagine we could also pay the mortgage through the billpay. I prefer paying our bills online and found it really convenient to be able to do that with our last mortgage company. Thanks for the suggestion, Nichole.

**Ponderer** · 01-11-2012, 04:29 PM

I have several accounts with my credit union. I can log on and transfer money around from checking to savings or make additional payments on a loan or credit card I have, above and beyond the once a month automatic payment I have set up.

Is this something that might be available for you to do?

**Michelle68** · 01-11-2012, 07:40 PM

Elizabeth, I'm not yet sure if I can do that. I know that I can set up the account on the billpay feature of our account, but I don't see anywhere to add a note that indicates it is for principal reduction. I think I probably just need to wait and see what the payment coupons look like and what the info says when they send it to us. I guess I'm just jumping the gun a bit because I'm way ready to make those extra payments to get this thing paid off.

**Cricketlegs** · 01-12-2012, 12:23 PM

Remember though that while I can pay my water bill and one of my dds student loans through my bank both these places only take online payments through their websites so my bank mails them a check I do them online through the bank as my other bills but it takes LONGER so make sure you know what is going on because what goes through next day online with some can be a week or more for mailed bank checks.

**Greebo** · 01-16-2012, 08:45 AM

Originally Posted by Michelle68

I assume they are. (They told us they would.) We just haven't received them yet.

Assuming they do, they should have a space for extra money to principal on the coupon. Just make sure you fill it out.

Old school but it usually works.

**Telephus44** · 01-16-2012, 11:49 AM

Can I ask a dumb question? What other options does the bank have besides adding extra to the principle? I ask because we pay a little extra each month, and I have never indicated how I wanted the extra to be applied, and they have always automatically applied it to the principle. I pay in person and I've never even been asked.