[Nee]

Yall may already have talked about this…but I need help. My mortgage company sold my loan to freedom mortgage. Freedom mortgage does not allow its customers to pay ahead.

Therefore, I am only able to pay my principle or escrow and not my monthly payment until June. Does this seem like an issue?

I’m kind of distraught because I really enjoyed the website and ability to pay my bill ahead with my last company.

I feel like I am going to be losing out on my interest rate. It is a fixed mortgage.

It’s super confusing for me. I think what I’m frustrated about is that I can’t make payments towards my interest.

They lady said I can’t pay the mortgage note more than 2 months ahead. Before I just paid the mortgage and added $$to the principal.

Anyway I can find a lender that will let me?

[Eric]

that sounds illegal. I think whomever you spoke with was incorrect. i’ve never heard of not being able to prepay any payments.

[Jeff]

Pay extra principal payments only. You can turn a 30 year mortgage into a 15 year mortgage just by making a few extra principal payments each year.

[Robin]

We have freedom mortgage. We are able to pay extra towards the principal on their app.

[Ashley]

Why would you want to pay ahead? Paying additional principal each month will shorten the length of your loan, and the total amount.

Is that what you’re aiming for?

[Melissa]

Actually you won’t lose out. They let you pay the principal ahead. That’s the part that saves you money. Paying interest “ahead”, does not.

All they mean is that if you are making extra payments, then the extra will all go towards principal (that’s what you want them to do to save you money) and when you get closer to your next payment due date then they will take an interest payment.

Honestly most of the time mortgage lenders actually take extra payments and count them as payments (principal and interest) paid ahead of time and that benefits them, not you.

When you pay interest ahead of time you are loaning money to them free of charge.

Paying principal ahead will save you interest and a lot of money in the long run.

[Jule]

For payments to count towards interest you need to ensure they are applied to the PRINCIPAL.

Paying ahead does not do that.

[Brian]

No reason to prepay interest, just pay principle which reduces payments and interest in the long run.

[Bill]

You shouldn’t ever pay your mortgage ahead. If you want to make extra payments to principle, just do that.

[Elizabeth]

Never prepay interest. Pay extra principal if you want. If you are wanting to pay payments ahead do you don’t have to think about it, put your payment on autopay.

[Wallace]

I have Freedom Mortgage. I make a payment twice a month with extra going to principal only.

I set it up on their website.

[Heather]

I have Freedom and am able to make additional payments towards the principal directly.

Paying the monthly payment ahead is really not beneficial to you.

[Melissa]

You want to prepay principal. Maybe escrow in certain situations.

You want to be making a payment every month and putting any extra towards the principal.

[Carrie]

So, what I do is have a separate checking Account that only contains money to be used for my mortgage and escrow payments.

It does usually contain an extra month or two as I always pay 1/2 my mortgage payment every paying thus making one extra payment a year.

I evaluate the amount in the account once a year to decide if I want to make an extra principle payment or take any extra out towards a home improvement or leave it for a prepay.

Works great for me.

[Enilda]

If your mortgage was sold you are still on the mortgage agreement you were on. You didn’t refinance to a company with a prepayment penalty. They didn’t give you a new contract.

Many mortgage companies require that payments to principal be made on the 1st of the month.

If you mail your payment, write mortgage payment on the regular payment and principal payment on the other check.

[Jay]

I have freedom mortgage and you can add principle payments each month. It isn’t the same as prepaying but it is most likely a better option in most situations.

It is odd getting your mortgage sold to a new company.

I think you will get it figured out! Good luck.

[Sue]

So just mail in the payments then. I don’t think they would not accept them when received maybe their system just dosent allow regular payments to be prepaid you should actually be paying principal reductions not regular payments in advance.

That will pay your loan off sooner if they are principal reductions.

[Meghan]

I’m not allowed to make extra payments but I can make more than the minimum payment, anything over the minimum goes to principal.

So, I just make one bigger payment on my due date.

[Emily]

Some of my mortgage companies think extra payments in a month are prepaying the next month (even when labeled principal only).

So, I started adding to my usual monthly payment any extra and the extra goes to principal.

It’s nice if your website will let you do just principal payments.

[Chip]

“Paying ahead” and significantly advancing the due date is generally not allowed for saleable mortgages.

However, you shouldn’t be prevented from paying down the principal.

You may need to mail a payment, or make a manual request to do so.

Not every online system is setup for it.

[Author]

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