Bitch, Rant, Complain...

[Bob Dog]

I never heard that one, I've never had any kind of a loan that I couldn't pay as much as I wanted when ever I wanted or at least as much as I wanted once a month. Looks like they are trying to max the amount of interest there collecting. Might be as my grandfather used to say "shenanigans". We used to have a name for one of those banks when they were only in North Carolina: Walk over ya.

[Altitude]

Originally Posted by Bob Dog

I never heard that one, I've never had any kind of a loan that I couldn't pay as much as I wanted when ever I wanted or at least as much as I wanted once a month. Looks like they are trying to max the amount of interest there collecting. Might be as my grandfather used to say "shenanigans". We used to have a name for one of those banks when they were only in North Carolina: Walk over ya.

Firstly I should correct my use of the word - the proper term is principal.

Anyhow, I'm not sure what the deal was with KCLAB's situation because if he had specified to apply the additional amount to the principal it should have been done. Even if you pay extra principal each month you still have to make a full payment the following month.

Mortgages are a little more complicated than other loans since most of them contain escrow, insurance etc. and the bank has no easy way to break additional amounts down and apply it correctly. However, applying any additional funds to the principal is easy and actually lowers the amount of interest you pay over time.

Perhaps KCALB just got a new teller that didn't understand what he was asking to be done.