What note to put on cheque to large mosqito
 

I am forwarding a largish payment to the loan shark mosqito with the note on our home and am working on the note to put on the bottom to help ensure they do NOT apply funds to interest.

Thinking: All funds apply to principle only.



What does the Pelican Trust think? Better ideas????

Contact the lender and find out how they want it handled, if they'll even do it. With some loans, extra payments just go to future payments and not to principle.

For starters, I'd spell it principal...

I'd enclose a letter spelling out your intentions and send it, along with the check, via USPS certified/return receipt.

JR

If they won't put it on the principal, then threaten to re-fi, if you're able to. I re-fied last month and went from 4.625% to 3.5% with no closing costs other than a $150 or so fee to my previous lender.

pay attention to spelling, correct!


Loan has no early payment penalties but that is a good point on ensuring funds do not go directly towards future payments via a previously signed contract. I do not believe they do but I will have to pull out the loan paperwork again.

This is what I don't understand.
This is massive fraud at the highest level, at the level of billions of dollars every month.

A). When you sign a business agreement(a contract) with another party, the two parties agree to fufill the terms of the language contained within that agreed contract.

Done. Simple. O.k.

B). When 1/2 that original contract is "re-sold" by one to another party(without disclosure)....then the new party changes the terms(without disclosure)....and the other party is now subjected to a huge chain of fiduciary events, based on those new undisclosed conditions.

Multiple hundreds of thousands of dollar by millions of people....

Damn! I haven't even looked at refinance since I'm at 4.625%. I guess I need to rethink that.

BoA was doingthat to me until I caught it. $3000 I intended for principal was simply applied to future payments. They were good enough about adjusting it but I have to ensure thet do it correctly whenever I make a payment.

loan shark mosqito? (sp)
Hmmm, they are obviously evil for giving you what you asked for, you should just pay off the entire loan right now so you don't have to deal with the "loan shark mosqito" anymore.

That'd teach em. And next time just pay cash for everything so they can't get their mitts in you.
Everything. Just write a check for a place to live, don't borrow anything.
If you can't afford to pay cash for a big house, get a small one. If you can't afford to pay cash for a small one, live in a cardboard box. on the side of a street or alley. Stickk to your guns!
Don't rely on a "loan shark mosqito" who might expect you to live up to your side of the bargain that you agreed to in writing on a written legal contract. One that you signed voluntarily. One that you asked for.
People who loan money to others to help them afford things they otherwise could not afford are obviously evil monster "mosqitos" (sp).

When I was paying the mortgage off early on my first house, I would enclose a note with the check with something like:

$XX for original loan amount

$XX for PRINCIPAL ONLY.

(and I also repeated that message on the check.

I kept a miser's eye on the balances and the only time it didn't work in my favor was when the loan was sold - the old and new mortgage companies just pointed at each other when the extra went into escrow instead of paying down the note... (yes, I was angry, and it caused me to double (redouble?) my efforts to rid myself of a mortgage.)
I was more anal about this than anything I have ever done before or since.

My payment coupons have lines for entries like "additional principal."

Also has 2 other lines for "late charges" and "other charges." ;)

sammy,

Your wonderous lack of insight as to what is happening with the institution in question obviously demands the vitriol expressed from behind the bravery of your keyboard sheltered safely in California. As I have ignored you in the past so it shall remain.



John,

I am not certain to what you are referring. I have more than lived up to my end of the bargain, that has never been in question. I am assuming (for what it is worth) you are referencing the discount of loans to third parties. If this is your point of reference, then yes, I will agree with you. Much is done without disclosure. I am not experiencing this issue, the institution has not discounted my loan.



Others,

Thank you for the input. One more bit of negotiating with said institution. Unfortunately, I shall not be able to post about the situation. Suffice it to say I have won the last two rounds. For now. Several more points for me to ponder.

I was very upset when I posted above. Time and situation has changed my temper. Back to raising animals and watching the hay die from lack of rain.

do they allow you to pay online? with Chase, you can delineate exactly where you want each part of the payment to go....escrow, principal, etc. super easy.

If the mortgage co. applies an extra payment towards "future payments" then what do they do with next month's regular monthly payment? Apply that towards "even-further-into-the-future" payments? Then what happens at the end? Do they refund it to you, plus interest based on however many years ago you made that payment?

Assuming your account is fully up to date, to apply extra payments to anything but principal would likely be illegal. You agree to pay $x per month towards your loan, at a minimum. Of that, $x is the interest owing on your current balance, based at x% per annum, divided by 12 (1 month of interest which is calculated on a per-annum basis). Anything above and beyond that interest MUST go to principal - there's simply nothing else to do with that money that wouldn't fall under the category of embezzlement.