Mortgage Payments

[trendlover]

Quote from Vinny1:

I usually pay my mortage a few months in advance, and then the bank immediately sends me a bill after I make a payment. For the second time in the last several months, they processed my mortgage payment incorrectly. Instead of applying it as a regular payment with some going to interest and some going to principal, they processed both payments as going to principal only,
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Viiny1, I will guess the bank is not knowing why someone make (advance) payment for no reasons. People pay advance for to save money on interest. So they see your advance payment (but you not telling them is for the principal?) so the processor (assume) you want to save money on interest. They apply your (extra)money to the principal.

 

[nutmeg]

Prepaying the principle is putting your money where you're never going to get your money out again. One might be better off saving that money for a future opportunity.

Yea well the numbers crunch favorably in doing this, it is a trap. What good is shvaing 5 years off the back of your mortgage when in 5 years forward you might not be able to afford the taxes (and neither will anyone else for that matter).

 

[trendlover]

Quote from nutmeg:

Prepaying the principle is putting your money where you're never going to get your money out again. One might be better off saving that money for a future opportunity.

Yea well the numbers crunch favorably in doing this, it is a trap. What good is shvaing 5 years off the back of your mortgage when in 5 years forward you might not be able to afford the taxes (and neither will anyone else for that matter).

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Yes. If Vinny1 can take the money extra because he not paying down principal, y make (MORE) money from investment/trade than the (front end) interest he will pay, that is good.
Can he?

 

[nutmeg]

Quote from trendlover:

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Can he?

Isn't everyone saying to buy dividend paying stocks? Now of course this leads us to numbers and they make my head hurt but liquidity is worth something as opposed to dumpping more hard earned money into a declining real estate market.

 

[trendlover]

Quote from nutmeg:

Isn't everyone saying to buy dividend paying stocks? Now of course this leads us to numbers and they make my head hurt but liquidity is worth something as opposed to dumpping more hard earned money into a declining real estate market.

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Hmm? Yes.
1.We have to know if poster Vinny1 buy his house on the peak of the bubble
2. What is market value (now) of his house compare to his loan?

So is Vinny1 owe more to the bank than the house value?

Nutmeg, I still do not understand why Vinny1 make advance payment, but he is not wanting his payment to go to the principal.

 

[mgookin]

Quote from Vinny1:

... Can I sue if it keeps happening?

...

You can sue anyone, any time. As to whether the Court will deem it a valid cause of action is another story. If you got your mortgage through the same entity you make payments to today, it's a matter of the contract (Note) and law. If your mortgage has been whored all around the Earth like most, it's a matter of your note, law, and as much of derivations as the thieves can get away with.

Remember, your bank is not your friend; they are the enemy. They hate you and will steal all they can.

 

[peilthetraveler]

I thought that any interest on the mortgage becomes principal the day its accrued except in the case of loans that are simple interest loans which 99.99% of mortgages are not. I say this because I have a silent second mortgage for $4k at 3% simple interest and I dont pay interest on the interest that accrues, only on the original $4k principal. On my first mortgage though, my interest just gets added to the original principal. Seems like telling the bank to pay principal on a compounding interest loan is going to save you a few cents at best.