Retiring Early

Saturday, October 28, 2006

Screwed again!

do not enter signWell, I guess I should have seen this coming. Although I regularly pay a little extra on my mortgage payment each month, the $4500 the I recently paid was mis-applied. Surprise, surprise. It happens almost every time I pay more than the usual extra principle payment. What I can't figure out this time is where the money went! On my online statement, they show a payment of $3583 and a second principle-only payment of $917. Fine. Breaking down the numbers, however, the good folks over at Abn Amro applied the $3583 as follows: $462 applied to principle, $955 in interest (yep, that hurts!), and $373 applied to escrow.

Now, I took algebra in high school, so I'm fairly confident that 462+955+373 only equals my normal mortgage payment of $1790. So why, may I ask, does the applied payment total say $3583? Where is my extra $1793 that should have been appled to my principle???

I was even more frustrated when I called them at 4pm on Friday, navigated through 5 call routing options only to find out that their customer service center was already closed. Oh well, I guess I'll get in the phone queue first thing Monday....


  • At 10/29/2006 2:01 PM, Anonymous Anonymous said…

    yep. you should send a seperate check and write on it that this portion is only to be applied to principle.

  • At 10/29/2006 3:16 PM, Blogger fin_indie said…

    Yeah, I have heard that. I pay all of my bills online and I've found that if I send a separate online payment, they apply it as a payment for the next month (!!), not as extra principle. I thought I had this figured out with them: one big payment... pay off the current payment and apply the rest to principle. Ah well... must have had a newbie applying payments that day.

  • At 10/29/2006 10:18 PM, Blogger StealthBucks said…

    This happened to me with an old Wamu loan. They probably sent it to a misc. file. (kid you not) Get a human and bitch like nuts. If they appreciate you as a client who can do a lot of negative damage to the company name, they will back date the payment and credit future interest. Expect no less than this and then get the definitive on future principle pre pays. Go get em... Of course with respect, dignity, and maybe a teany bit of attitude.


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