prepaying loans

This Is Why You Need To Double Check Your Statements After Prepaying Your Mortgage

This Is Why You Need To Double Check Your Statements After Prepaying Your Mortgage

For those who try to prepay their mortgages, here’s a cautionary tale from reader RM. Basically every single time that he’s prepaid his mortgage, there’s been a big problem. The bank keeps applying it to the future interest instead of the existing principal. The future interest is calculated based on the current principal, so that means they’re having him paying extra interest that would have never accrued if they had subtracted his payment correctly! [More]