Would they automatically put the estimated amount to the interest or would they actually put the entire thing on the principle? Just out of curiosity, was wonder what would happen?What would happen if you sent your mortgage payment saying for principle only for several months?
They'd ignore what you said, put the amount owed for interest to interest, then the rest to principal and escrow.What would happen if you sent your mortgage payment saying for principle only for several months?
I'm afraid they would still put it towards the interest first. To do what you are talking about it has to be in addition to your normal payment. In other words you would have to pay your normal monthly payment and then make a second payment and right on the check ';apply to principal only.'; This can make a pretty significance difference if you did this once or twice a year.
They would still put the amount to interest. If you underpaid, they might not even apply the payment, just send you a notice saying you underpaid.
Sending a check for principal only is done in addition to your regular payment. It helps to pay your mortgage down quicker. You should check your loan docs before doing this in case they charge you for paying your mortgage down early.
if you could, could you send 2 checks? ONE for interest and
the other for principle?
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