Does the "extra" go to interest or principal?

[Big Thunder]

Wassup SwacPagers? I have question.

When I send an extra $$$ or two with my mortgage/car payments, does the extra go to principal or interest?

 

[SLT]

Make sure you stipulate that it goes toward your PRINCIPLE!!!!!!

 

[MsJag4Jag]

Make sure you stipulate that it goes toward your PRINCIPLE!!!!!!

Yep. If you put it in the mail, there is a box with your stub that states "Principle, Escrow, etc."

 

[Da_Sperm]

Wassup SwacPagers? I have question.

When I send an extra $$$ or two with my mortgage/car payments, does the extra go to principal or interest?

Interest is paid FIRST, then everything else goes to principle. Sometimes, they will put the overpayment on the next months bill.

 

[Suge]

With most mortgages, even interest only loans, the extra goes to the principle. Not sure with car loans....

 

[Da_Sperm]

With most mortgages, even interest only loans, the extra goes to the principle. Not sure with car loans....

Be careful, some loans have escrows and they will put the EXTRA into your escrow account before they put it toward the principal. You have to tell them to apply it toward the principal in many cases.

 

[STRAWDOG]

Make sure you stipulate that it goes toward your PRINCIPLE!!!!!!

:nod::nod::nod: What SLT said........
You must stipulate where you want the money to go. READ the payment voucher because some will actually have you send the EXTRA to some other location or they will stipulate some special wording to be on the check.

 

[Big Thunder]

Thank you all for your feedback! I pay my bills on-line but I took a close look at one of my stubs and noticed that the extra was applied to the interest. I had no intention of doing that, so that prompted my question. I will see to it that is goes the other way from now on.