Spouse and I have around 165k left on our mortgage (at 6%) and our mortgage payment is set to auto-pay at the 1st of each month.
We also make a principal only payment of $300.00 on the 15th of each month.
We have noticed, however, that the bank that owns our loan does not apply these extra principal payments until the 1st of each month. For example, if I drop off a principal only payment on March 15th, it appears as applied on March 1st (this is the same for each month).
We had read/heard somewhere a few years back that applying principal only payments around the 15th of each month makes more of an impact on remaining balance than a lump sum at the end of the year or even at the 1st of each month.
So I suppose my questions are: Does a principal only payment applied on different days of the month make any difference? And, is the fact that our bank applies them on the 1st of each month instead of the 15th sound intentional
or suspicious?
Thanks for your time.
We also make a principal only payment of $300.00 on the 15th of each month.
We have noticed, however, that the bank that owns our loan does not apply these extra principal payments until the 1st of each month. For example, if I drop off a principal only payment on March 15th, it appears as applied on March 1st (this is the same for each month).
We had read/heard somewhere a few years back that applying principal only payments around the 15th of each month makes more of an impact on remaining balance than a lump sum at the end of the year or even at the 1st of each month.
So I suppose my questions are: Does a principal only payment applied on different days of the month make any difference? And, is the fact that our bank applies them on the 1st of each month instead of the 15th sound intentional
or suspicious?
Thanks for your time.
Statistics: Posted by futurenoodle — Sat May 18, 2024 9:41 am — Replies 3 — Views 344