Can I tell the lender how to apportion weekly payments on my mortgage
 

I have a mortgage on which the monthly payments are about $700. My
bank allows me to pay the lender on a regular weekly basis. I set it
up to pay them $200/week.

The bank is apportioning all of the weekly payment to principal. I
called them and asked them to apportion first to the interest due
since the last payment then to principal so that I would not fall
behind on principal.

They refused to do so saying that the option is not available. I
called the Office of Thrift Supervision to see if they can refuse to
apportion the funds according to my wishes but had to leave a message.
Does anyone here know if they can refuse my request?

I'm trying to pay off the loan faster and not use their biweekly
system for which they want to be paid. Of course it is in their
interest to refuse my request but I think as a borrower I have the
right to direct the apportioning of my payments.

There may be a contractual issue in the mortgage contract but I don't
have it at hand right now as I'm on the road.

Thanks for any information anyone might have.

Mike

Can I tell the lender how to apportion weekly payments on my mortgage
 

In article ,
Mike Maas wrote:

I have a mortgage on which the monthly payments are about $700. My
bank allows me to pay the lender on a regular weekly basis. I set it
up to pay them $200/week.


Just pay $867/month. Problem solved.


Dimitri

Can I tell the lender how to apportion weekly payments on my mortgage
 

I have a mortgage on which the monthly payments are about $700. My
bank allows me to pay the lender on a regular weekly basis. I set it
up to pay them $200/week.

Pay the mortgage on a MONTHLY schedule, like the bank wants.
It is then obvious that part of it is for interest, and part
for principal, but you should enclose insructions like:

Regular payment: $700 (some of this will be principal, also)
Additional principal: $120

(My mortgage had payment slips you were supposed to enclose with
the payment and could indicate such things on it. They had
a nasty habit of apportioning things to ESCROW unless otherwise
directed, which saves you nothing on interest at all.)

I'm trying to pay off the loan faster and not use their biweekly
system for which they want to be paid.

Making more frequent payments probably wastes more money on stamps
and envelopes than you save in interest. And you get lots of
headache from the bank when they misunderstand your intentions,
intentionally or otherwise. Biweekly is a crock, even if it's free.
It's paying MORE, FASTER, that saves on interest. "Biweekly" plans
try hard to make you not notice that there are 26 1/2-month payments
in a year, not 24, and THAT's where the savings come from.

Gordon L. Burditt

Can I tell the lender how to apportion weekly payments on my mortgage
 

In article ,
Gordon Burditt wrote:

Making more frequent payments probably wastes more money on stamps
and envelopes than you save in interest.


Most mortgages compound monthly, so you save NOTHING by making payments
to principal more frequently than once per month. YMMV.


Dimitri