- posted 10 years ago
I just made a largish extra principal payment on my home mortgage. My normal payments are due on the first of the month.
The bank allocated the payment as 1. Advance payment of the Mar 1 amt due with principal and interest breakdown as it would have been at that date. 2. Balance applied to principal.
They also indicated the next mortgage payment not due until April 1.
Assuming I plan to make my regular payment as of Mar 1, does this type of allocation make any difference? Or should I insist that the entire amount be applied to principal (which they will do, if I call)?