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Mortgage Loans - Payments/Late Payments

My monthly mortgage payment is $500 (principal and interest). I sent a payment of $1,000 with the intent of applying the surplus to the principal, but the bank applied the entire surplus to the interest. Can it do this?

Generally, national banks will allow you to pay additional funds towards the principal balance of your loan. However, you should review your loan agreement or contact your bank to find out their specific process for doing so.

I mailed my mortgage payment before the due date. But the bank received it one day after the due date, and I was charged a late fee. Can it do this?

Yes. You must mail your payment in sufficient time for the bank to receive it on or before the due date.

When considering timeliness of a payment, banks are not obligated to honor postmarked dates. In determining lateness, the bank goes by when the payment is received, not when it was mailed.

I am three monthly payments behind on my mortgage loan. I tried to make one payment, but the bank is demanding all three payments to bring the mortgage current. Is this legal?

Yes, the bank can refuse any partial payment that does not bring the loan current.

You are required to pay the monthly amount specified under the terms of your loan contract. For further explanation, review the loan documents provided to you at the loan closing.

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