I've been paying extra onto my mortgage (like $120 more/month) for the last year or more, and I pay on the 18th vs. the due date of the 22nd. Anyway, since May or June, I've noticed that the payment split-outs no longer show "interest" and instead only go to the principal and ESCROW. It would appear that $0 have gone towards interest since then...

What's going on? Have I gotten ahead of payments and am just having it all go to principal? Is it an error on their part? Do I just shut up about this and keep doing what I'm doing or is there a chance they retroactively hit me for the interest on those payments?

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Posted by VermilionTiger

Member since Dec 2012

38228 posts

Posted on 10/21/24 at 8:31 am to BigOrangeVols

Call your mortgage company

Best case scenario you’re fine

Worst case scenario, you’re not

This stuff doesn’t slip through the cracks and will be caught

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Posted by UltimaParadox

North Carolina

Member since Nov 2008

47216 posts

Posted on 10/21/24 at 8:47 am to BigOrangeVols

quote:
Have I gotten ahead of payments and am just having it all go to principal?

As the poster above said, I would call my mortgage company and get this clarified, but if I had to guess this is it.

Sounds like you were applying the extra 120 a month towards a future payment and now have gotten far ahead.

Were you specifically ear marking the extra payment towards principal only?

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Posted by Weagle25

THE Football State.

Member since Oct 2011

47316 posts

Posted on 10/21/24 at 9:09 am to UltimaParadox

I don’t think you can get ahead to the point where you owe zero interest unless you pay the entire thing off. I would just talk to them like others have said

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Posted by Im4datigers

Northern Virginia

Member since Oct 2003

4555 posts

Posted on 10/21/24 at 10:19 am to Weagle25

Usually all payments go towards outstanding interest first. And then any remaining goes towards principal.

Unless your note is super small and you’ve been paying $120 extra for years, something is screwed up with it showing no interest due. I’d just call your servicer and ask.

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Posted by JumpingTheShark

America

Member since Nov 2012

24209 posts

Posted on 10/21/24 at 4:22 pm to BigOrangeVols

You have probably paid up enough where technically you don’t have a payment due, same thing happened on my car.

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Posted by Righteous Dude

Member since Oct 2017

1453 posts

Posted on 10/22/24 at 10:24 am to JumpingTheShark

quote:
You have probably paid up enough where technically you don’t have a payment due, same thing happened on my car.

This typically doesn't happen with a RE mortgage.

You can pay an extra $10,000 one month and you will still owe your regular monthly payment the next month.

The extra money will go towards your principal and your loan will get paid off earlier since a larger portion of your future monthly payments will be applied to principal rather than interest.

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Posted by BigOrangeVols

Knoxville

Member since Jul 2015

3082 posts

Posted on 10/23/24 at 3:39 pm to Righteous Dude

So reached out to them - it was an error with their system andhow it was entered in. The account was accruing interest still, but was not paying it down. Still waiting to hear back from them on next steps. They admitted it's fully on them so whatever the course of action I won't be penalized - I've also asked for documentation for all of it.

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