How do I make principal only payments on mortgage?

Seeking Advice
1

Principal only
Mortgage payments: If I make principal only payments by check, does writing “Towards Principal Only” in the Memo section of the check direct the lender to apply it there or does it need to be written on the back?

2

Talk to your mortgage company. Mine puts any amount over the base mortgage payment towards the principal and I can arrange for it electonically…

3

For my mortgage you can add extra amount electronically and have it done automatically going forward. Check to see if your bank does that

4

Micah said:
For my mortgage you can add extra amount electronically and have it done automatically going forward. Check to see if your bank does that

I have that option as well except cannot set it on Automatic. That would be ideal.

5

@Teal
Writing and mailing a check isn’t automatic either?

6

Just call your servicer. But probably that memo section will never, ever, in any situation ever, be referred to by a business processing your payment.

7

99% of servicers will apply anything extra over the regular payment to principal, unless there is something like an escrow shortage or you’re behind on payments. You don’t need to specify principal only like an auto loan.

I cannot think of one that doesn’t do this, but they may be out there.

8

@Blake
Yup, my payment is 6 dollars off of an even 50. So I’ve been paying 6 dollars extra every payment because, ya. Nothing like the feeling of getting out from under that mortgage early!!!

9

What mortgage rate do you have? It might not even be in your best interest to pay it off sooner. The same money invested into index funds might be your better option.