Mortgages & Home Equity: Payments & Late Payments
My monthly mortgage payment is $500 (principal and interest). I sent a payment of $1,000 with the intent of applying the surplus to the principal, but the bank applied the entire surplus to the interest. Can it do this?
Generally, national banks will allow you to pay additional funds towards the principal balance of your loan. However, you should review your loan agreement or contact your bank to find out their specific process for doing […]
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I mailed my mortgage payment before the due date. But the bank received it one day after the due date, and I was charged a late fee. Can it do this?
Yes. When considering timeliness of a payment, banks are not obligated to honor postmarked dates. In determining lateness, the bank goes by when the payment is received, not when it was mailed. Generally, the bank must […]
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The bank notified me that there was a shortage in my mortgage escrow account and increased my monthly payments. Is this legal?
Yes. If your bank determines that there will not be sufficient funds in your mortgage escrow account, it may raise your payment by the amount of the shortage. The bank may offer you the choice to repay the amount in one […]
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I am struggling to pay my mortgage and would like to get assistance. What should I do?
First, contact your lender or mortgage servicer and ask for assistance. You can also seek assistance or find a housing counselor through the following resources: The Making Home Affordable program helps responsible […]
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I am three monthly payments behind on my mortgage loan. I tried to make one payment, but the bank is demanding all three payments to bring the mortgage current. Is this legal?
Yes, the bank can refuse any partial payment that does not bring the loan current. You are required to pay the monthly amount specified under the terms of your loan contract. Review this contract for policies specific to […]
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