loan/mortgage repayment via sched xactions: feedback request

[Richard -Gilligan- Uschold]

Derek Atkins wrote:

>
> > As an aside, for case #2, I would think that any bank would allocate $$ to
> > interest first, but after that it might depend on the bank.
>
> Not necessarily.  In fact, in my experience banks apply over-payments
> to principal, not interest.  Once you pay off your interest for the
> period, all leftover payment is applied to the principal (thereby
> "paying down" your loan.

This USED to be the case, and is what most borrowers would like. Now, banks
frequently put over-payments in to the escrow account. A lot of payment coupons
have check boxes to indicate where any over-payment is to be applied. If no
boxes are checked, it may not go where you want it to go!

My mortgage has been serviced by half a dozen different firms over the years,
they all have different rules.

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