Originally Posted by
Richard1148
I just went through the first few steps on the website to see how it worked, and only one amount can be entered for the payment. When I pay directly to my lender online, I have to enter any extra amount as either extra principal or extra escrow. Without my lender knowing what the extra amount is for, it may not be applied as extra principal. More than likely, it may be applied as a partial payment toward the next payment, which may include some interest rather than all principal. I would like to use this service if Amex gets approved, but I also want to pay extra principal and am not certain that it would be applied correctly.
Great question. We have found that each lender processes extra payments differently. For example, Wells Fargo directs payments in excess of the monthly bill to principal by default. Some of the newer mortgage products (neg am, IO, or PITI) that allow flexible payment amounts may be treated differently. The best way is to verify with your specific lender what their default procedure is for excess payment amounts. If your comfortable telling me your lender, you can email me and I'll research this for you.