I was about half-way through a 15-year mortgage (refi) that had the once nice rate of 4.875%. Not so good these days, plus less interest so reduced tax deduction. The balance was so low that I couldn't get any significant traction on a new refi unless I took out equity. I did find the low-rate Penfed 60-month home equity loan (https://www.penfed.org/home-equity-loan
) that is pretty enticing. The plan was to pay off the original at Wells Fargo and get a HEL in an amount low enough to avoid any fees.
Originally I asked WF how to pay off the loan on-line. "Ha ha! You don't," said they. It seems interest accumulates each (of course) and the system is only allowed (foreshadowing - or so they say) to take regular monthly payments or extra against principal. Hmm. Well, for my purposes, bringing the principal down is good enough, so I made the June payment early, and once that posted sent another payment against the new remaining principal balance. Timed that to happen on the last day of May, so I would be even on interest payments. Then all I would owe would be a flat amount for the recording business.
Such a clever plan. However, the final principal payment didn't post against it. It was transferred all righty, but was in some sort of limbo. So I call up (their email support is usually a waste of time) last Saturday. The guy informs me that I screwed up by paying ALL of the balance. Went something like this:
"We want some left otherwise you might not finish it and we wouldn't get our fee."
"Well, just take the fee out too."
"Can't do that."
"Ok, reverse the whole thing and I'll start again."
"Nope, not that either."
"What! Why not?"
"Because that's our policy."
So that was annoying. Being Saturday, it seemed unlikely to get much action by working up the line. I call again Monday. The woman who I got this time looked at it and said, "They're doing something with it. I'm not sure what. Maybe reversing it." It was afternoon, so she suggested I call back the next day (today).
This morning I decided to check online to see if they'd reversed it. Instead I see:
Outstanding principal balance PD IN FULL
Huh. I look into the transaction details, seems they went ahead and applied the principal payment I'd made (credited back to when I transferred the dough), then pulled another $24 from my checking account for the fee. Technically I hadn't exactly authorized that although I'd suggested it to the the Saturday guy, so I'm not going to complain.
So, temporarily I'm without a mortgage, but remember the Penfed HEL in work, so temper your giddiness. I'll be back in debt before you know it with an even higher monthly payment, but an interest rate less than half. Whee!