Chase CS playing games w/me

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Que1999
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Chase CS playing games w/me

Post by Que1999 » Fri May 18, 2018 2:54 am

I called Chase to make an extra principal payment of $5,000 yesterday towards my mortgage. I made it abundantly clear, by asking and stating numerous times that I would like the full $5,000 to go towards the PRINCIPAL. Today I double-check to make sure everything is good to go, and what do I see? I see that Chase applied $4,127.50 to my PRINCIPAL... and a separate charge of $872.50(which is the cost of my monthly mortgage payment) = $5,000.

The problem is that $219.13 of that $872.50 was INTEREST. Why must these banks play games with our money? Instead of being transparent and doing as I very, very, very clearly stated that I would like the full $5,000 to go towards PRINCIPAL. So now I've sent a secure message through their customer service center and am awaiting a reply.... :annoyed

I guess, for those of you who make early principal payments towards your mortgage every now and then, take a closer look and make sure everything is on the up-and-up.

The Wizard
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Re: Chase CS playing games w/me

Post by The Wizard » Fri May 18, 2018 3:29 am

Interest accumulates daily.
All payments pay off accumulated interest first, then principal.
So, when was your last regular payment and how many days have elapsed?

Only way to apply entire extra amount to principal reduction is to add it on top of a regular payment.

Sounds like their CS person was inexperienced and doesn't understand how their computers work. CS person should have said: No, that will not be possible...
Attempted new signature...

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Que1999
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Re: Chase CS playing games w/me

Post by Que1999 » Fri May 18, 2018 4:00 am

The Wizard wrote:
Fri May 18, 2018 3:29 am
Interest accumulates daily.
All payments pay off accumulated interest first, then principal.
So, when was your last regular payment and how many days have elapsed?

Only way to apply entire extra amount to principal reduction is to add it on top of a regular payment.

Sounds like their CS person was inexperienced and doesn't understand how their computers work. CS person should have said: No, that will not be possible...
I just checked the multiple prior principal payments I have made on my mortgage in the amounts of $5,000 and $10,000 over the past few years. This is the first one that has had any amount of interest in the payment breakdown. They all state a direct payment towards principal, with the 'interest' caption at $0. This payment is broken down into 2 separate sections, and the second section of the payment for $872.50 has that $219.13 interest payment under the interest caption. Like I said, this is the first time this has ever happened over multiple payments over multiple years.... So I'm pretty sure it's an error on their part.

The Wizard
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Re: Chase CS playing games w/me

Post by The Wizard » Fri May 18, 2018 4:19 am

If they are doing true continuous or even daily compounding of interest, then it doesn't matter.
What you have is a Mortgage Balance that grows slightly each day.
And the next payment of any amount reduces the current Mortgage Balance by exactly that amount.

But you want to verify that they are doing it correctly, that there's no funny business on the interest.

Check your regular payment history. The amount paid to "interest" should jump around a bit from month to month, due to differing number of days in a month and due to your payment being received a few days earlier or later from month to month.
If that's happening, then the bank is likely doing it correctly...
Attempted new signature...

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Que1999
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Re: Chase CS playing games w/me

Post by Que1999 » Fri May 18, 2018 4:46 am

https://imgur.com/E63QlSa
https://imgur.com/3VotRAB

I attempted to paste these pics into the post directly but that was taking too much time and had too many 'red letters' popping that weren't allowing it.

One is my latest payment with the interest included, the other is one prior principal payment with the breakdown included, showing zero interest.

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oldcomputerguy
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Re: Chase CS playing games w/me

Post by oldcomputerguy » Fri May 18, 2018 5:20 am

Our mortgage was with Chase, and we made extra principal payments as often as possible, and never ran into this problem. On the monthly statement and returned form there were line items where I could indicate how any extra was to be allocated; it was always applied as I indicated. I never did a mortgage payment over the phone, though, so I can't say what would have happened in that case.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

The Wizard
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Re: Chase CS playing games w/me

Post by The Wizard » Fri May 18, 2018 6:04 am

Que1999 wrote:
Fri May 18, 2018 4:46 am
https://imgur.com/E63QlSa
https://imgur.com/3VotRAB

I attempted to paste these pics into the post directly but that was taking too much time and had too many 'red letters' popping that weren't allowing it.

One is my latest payment with the interest included, the other is one prior principal payment with the breakdown included, showing zero interest.
I understand and don't see any big problem.
They may have updated their computer system recently. Looks like it was open for this month's regular payment so it took that out first. If you make another regular payment now, it should go all or mostly to principal since you paid all accrued interest on the 17th...
Attempted new signature...

The Wizard
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Re: Chase CS playing games w/me

Post by The Wizard » Fri May 18, 2018 6:14 am

Typical mortgages have you paying a constant dollar amount each month with a high percentage going to interest in the early years and an increasing percentage going to principal as time goes on.

Take an example with a $1000 regular monthly payment that's been going on for a while and is now down to $500 going to interest and $500 going to principal.
Make a double payment next month and what should you see?
You should see something like $499 going to interest and $1501 going to principal.
If you see something like $999 going to interest and $1001 going to principal, then that's wrong and a bad banker needs to go to jail...
Attempted new signature...

rkhusky
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Re: Chase CS playing games w/me

Post by rkhusky » Fri May 18, 2018 6:41 am

The Wizard wrote:
Fri May 18, 2018 4:19 am
If they are doing true continuous or even daily compounding of interest, then it doesn't matter.
What you have is a Mortgage Balance that grows slightly each day.
And the next payment of any amount reduces the current Mortgage Balance by exactly that amount.

But you want to verify that they are doing it correctly, that there's no funny business on the interest.

Check your regular payment history. The amount paid to "interest" should jump around a bit from month to month, due to differing number of days in a month and due to your payment being received a few days earlier or later from month to month.
If that's happening, then the bank is likely doing it correctly...
For our mortgages the interest calculation has never depended on which day of the month the payment was received or the number of days in the month, the interest amount monotonically decreased as the principal was paid down. Our home equity loan and auto loans worked as described, with the number of days since the last payment changing the interest amount.

Has the OP made a principal payment mid-month before? We always added the additional principal to the monthly mortgage payment and so cannot address an additional mid-month payment. But it is likely that the payment can be changed to all go to principal.

Retired2013
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Re: Chase CS playing games w/me

Post by Retired2013 » Fri May 18, 2018 7:30 am

You'll need to look at your mortgage documents so see how payments will be applied. Your documents probable say that you can make extra payments but then you need to look at how your payments be applied? If the documents say that for all payments, interest will be applied first, then Chase did what the documents said. If you only make extra payments on the same day you make your normal monthly payments, then the full $5,000 would have gone to principal. However, since your interest was partially paid with the extra payment, when you go to make your normal monthly payment, a much larger portion should go to principal.

Example:
Normal monthly payment $1,000 ($400 interest & $600 principal)
Extra payment made on same day $5,000 all to principal since the interest was paid with the normal payment.
Total principal reduction for the month $5,600

Extra payment made mid-month ($250 interest & $4,750 principal)
Normal $1,000 monthly payment made later, $148 interest & $852 principal
Total principal reduction for the month $5,602

+1 The Wizard

4strings
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Re: Chase CS playing games w/me

Post by 4strings » Fri May 18, 2018 8:41 am

why didn't you just handle this online by yourself...takes like 15 seconds...

goingup
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Re: Chase CS playing games w/me

Post by goingup » Fri May 18, 2018 8:56 am

Que1999 wrote:
Fri May 18, 2018 2:54 am
I guess, for those of you who make early principal payments towards your mortgage every now and then, take a closer look and make sure everything is on the up-and-up.
How do you make a payment over the phone? I guess I don't understand how that works.
Just paid off our WF mortgage. They really had the easiest, cleanest mortgage bill pay set up I have ever used. Never a problem making principal payments, but I always did it at the same time the normal mortgage payment was made.

Might be easier to pay on-line and make extra payment with usual ones?

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TheTimeLord
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Re: Chase CS playing games w/me

Post by TheTimeLord » Fri May 18, 2018 9:01 am

Que1999 wrote:
Fri May 18, 2018 2:54 am
I called Chase to make an extra principal payment of $5,000 yesterday towards my mortgage. I made it abundantly clear, by asking and stating numerous times that I would like the full $5,000 to go towards the PRINCIPAL. Today I double-check to make sure everything is good to go, and what do I see? I see that Chase applied $4,127.50 to my PRINCIPAL... and a separate charge of $872.50(which is the cost of my monthly mortgage payment) = $5,000.

The problem is that $219.13 of that $872.50 was INTEREST. Why must these banks play games with our money? Instead of being transparent and doing as I very, very, very clearly stated that I would like the full $5,000 to go towards PRINCIPAL. So now I've sent a secure message through their customer service center and am awaiting a reply.... :annoyed

I guess, for those of you who make early principal payments towards your mortgage every now and then, take a closer look and make sure everything is on the up-and-up.
Just curious what do you perceive the difference to be since if they applied all to principal they would have just the added the interest the the amount you owe. In other words, you owe principal and you owe interest and you are charged interest on what you owe. I must be missing something because this sound like a case of a distinction without a difference. Personally, I always make additional principal payments on top of my regular payment. BTW, if you call the bank for a payoff on your home it will be the remaining principal plus interested accrued, not just your remaining principal.
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michaeljc70
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Re: Chase CS playing games w/me

Post by michaeljc70 » Fri May 18, 2018 9:36 am

Retired2013 wrote:
Fri May 18, 2018 7:30 am
You'll need to look at your mortgage documents so see how payments will be applied. Your documents probable say that you can make extra payments but then you need to look at how your payments be applied? If the documents say that for all payments, interest will be applied first, then Chase did what the documents said. If you only make extra payments on the same day you make your normal monthly payments, then the full $5,000 would have gone to principal. However, since your interest was partially paid with the extra payment, when you go to make your normal monthly payment, a much larger portion should go to principal.

Example:
Normal monthly payment $1,000 ($400 interest & $600 principal)
Extra payment made on same day $5,000 all to principal since the interest was paid with the normal payment.
Total principal reduction for the month $5,600

Extra payment made mid-month ($250 interest & $4,750 principal)
Normal $1,000 monthly payment made later, $148 interest & $852 principal
Total principal reduction for the month $5,602

+1 The Wizard
This.

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jeff1949
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Re: Chase CS playing games w/me

Post by jeff1949 » Fri May 18, 2018 9:41 am

I think what you will find is that with next month's statement there will be a substantial reduction in the "interest" amount from around $870 to around $650. You will just have to be patient.

Nate79
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Re: Chase CS playing games w/me

Post by Nate79 » Fri May 18, 2018 10:35 am

So they pre-paid your next monthly payment I guess. Not ideal but not the end of the world. Double check when your next payment is due and I bet your next payment was already paid now.

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Que1999
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Re: Chase CS playing games w/me

Post by Que1999 » Fri May 18, 2018 12:39 pm

Nate79 wrote:
Fri May 18, 2018 10:35 am
So they pre-paid your next monthly payment I guess. Not ideal but not the end of the world. Double check when your next payment is due and I bet your next payment was already paid now.
Yes, this is what they did. All of my prior years extra principal payments were applied as I asked, fully to principal. This is why I was confused about this payment... And all the prior years principal payments were made mid-cycle, or not on the 1st of the month. This time it looks like they pre-paid my monthly payment, which is scheduled to auto-pay on the 1st of each month, along with only a principal payment of $4,127.50 instead of $5,000. This isn't as bad as I thought it was, but it still isn't what I asked since I wanted to still make the June 1st payment as well. Now my next payment is scheduled for July 1st.

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jeff1949
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Re: Chase CS playing games w/me

Post by jeff1949 » Fri May 18, 2018 12:52 pm

Que1999 wrote:
Fri May 18, 2018 12:39 pm
Nate79 wrote:
Fri May 18, 2018 10:35 am
So they pre-paid your next monthly payment I guess. Not ideal but not the end of the world. Double check when your next payment is due and I bet your next payment was already paid now.
Yes, this is what they did. All of my prior years extra principal payments were applied as I asked, fully to principal. This is why I was confused about this payment... And all the prior years principal payments were made mid-cycle, or not on the 1st of the month. This time it looks like they pre-paid my monthly payment, which is scheduled to auto-pay on the 1st of each month, along with only a principal payment of $4,127.50 instead of $5,000. This isn't as bad as I thought it was, but it still isn't what I asked since I wanted to still make the June 1st payment as well. Now my next payment is scheduled for July 1st.
If it were me I would go ahead and make the June payment as planned. Certainly nothing wrong with that and it gets the loan paid off that much quicker!

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Que1999
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Re: Chase CS playing games w/me

Post by Que1999 » Fri May 18, 2018 2:01 pm

Situation rectified:

I understand wanting your payment applied as you intended.
My name is Phaedra, and I'll be glad to correct how your
payment was applied.

William, I reapplied the $872.50 as an additional
principal payment. Please allow 2 business days for your
account to update.

When you make a principal payment by phone, we have to
submit a request to have the funds moved to principal. The
customer service representative you spoke to on May 17,
2018, did submit the request. The process can take up to 3
business days, but the funds would have been moved. I just
want to make sure you were aware of this process for the
future.

We appreciate your patience as we work to resolve this
quickly. Chase is committed to keeping you satisfied with
our service.

Have an outstanding weekend.

Sincerely,

:beer

mortfree
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Re: Chase CS playing games w/me

Post by mortfree » Fri May 18, 2018 3:06 pm

next time pay 5872.50 and you'll be fine...

your next payment will most likely always be due and you just cause confusion when you try to slip in an extra principal payment "out of sequence"...

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Que1999
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Re: Chase CS playing games w/me

Post by Que1999 » Fri May 18, 2018 3:07 pm

TheTimeLord wrote:
Fri May 18, 2018 9:01 am
Que1999 wrote:
Fri May 18, 2018 2:54 am
I called Chase to make an extra principal payment of $5,000 yesterday towards my mortgage. I made it abundantly clear, by asking and stating numerous times that I would like the full $5,000 to go towards the PRINCIPAL. Today I double-check to make sure everything is good to go, and what do I see? I see that Chase applied $4,127.50 to my PRINCIPAL... and a separate charge of $872.50(which is the cost of my monthly mortgage payment) = $5,000.

The problem is that $219.13 of that $872.50 was INTEREST. Why must these banks play games with our money? Instead of being transparent and doing as I very, very, very clearly stated that I would like the full $5,000 to go towards PRINCIPAL. So now I've sent a secure message through their customer service center and am awaiting a reply.... :annoyed

I guess, for those of you who make early principal payments towards your mortgage every now and then, take a closer look and make sure everything is on the up-and-up.
Just curious what do you perceive the difference to be since if they applied all to principal they would have just the added the interest the the amount you owe. In other words, you owe principal and you owe interest and you are charged interest on what you owe. I must be missing something because this sound like a case of a distinction without a difference. Personally, I always make additional principal payments on top of my regular payment. BTW, if you call the bank for a payoff on your home it will be the remaining principal plus interested accrued, not just your remaining principal.
When you pre-pay principal on your mortgage balance, you effectively move to that payment # in the amortization chart. By pre-paying $5,000 towards my principal, I've moved in my amortization chart from payment # 280 to payment #288. The interest of those 8 payments equals(it isn't tax deductible for me anymore after the tax changes) $1,919. I saved $1,919 dollars by paying $5,000 towards my principal balance and moved up 8 payments. They tried to sneak in $219.13 in interest in there but I was able to catch it, and they will now be applying that money directly to the principal... Which is what I wanted in the first place. That's $219 back into my pocket. These savings don't apply if you pre-pay mortgage payments, because built into the payments is the interest.

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Que1999
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Re: Chase CS playing games w/me

Post by Que1999 » Fri May 18, 2018 3:08 pm

mortfree wrote:
Fri May 18, 2018 3:06 pm
next time pay 5872.50 and you'll be fine...

your next payment will most likely always be due and you just cause confusion when you try to slip in an extra principal payment "out of sequence"...
It was never an issue until this last payment. Must be because of the phone call, I did the past years prepayments online....

WL2034
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Re: Chase CS playing games w/me

Post by WL2034 » Fri May 18, 2018 8:38 pm

It doesn’t sound like they are charging you extra interest. Probably makes less than a couple bucks difference, at most, depending on how they calculate things. Unless I’m totally misunderstanding this, it doesn’t sound like a big deal, and I wouldn’t spend time trying to fix it.

squirm
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Re: Chase CS playing games w/me

Post by squirm » Sat May 19, 2018 12:08 am

Que1999 wrote:
Fri May 18, 2018 4:00 am
The Wizard wrote:
Fri May 18, 2018 3:29 am
Interest accumulates daily.
All payments pay off accumulated interest first, then principal.
So, when was your last regular payment and how many days have elapsed?

Only way to apply entire extra amount to principal reduction is to add it on top of a regular payment.

Sounds like their CS person was inexperienced and doesn't understand how their computers work. CS person should have said: No, that will not be possible...
I just checked the multiple prior principal payments I have made on my mortgage in the amounts of $5,000 and $10,000 over the past few years. This is the first one that has had any amount of interest in the payment breakdown. They all state a direct payment towards principal, with the 'interest' caption at $0. This payment is broken down into 2 separate sections, and the second section of the payment for $872.50 has that $219.13 interest payment under the interest caption. Like I said, this is the first time this has ever happened over multiple payments over multiple years.... So I'm pretty sure it's an error on their part.
I've made extra payments that went only towards principle, but it wasn't with Chase.

michaeljc70
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Re: Chase CS playing games w/me

Post by michaeljc70 » Sat May 19, 2018 9:56 am

Que1999 wrote:
Fri May 18, 2018 3:07 pm
TheTimeLord wrote:
Fri May 18, 2018 9:01 am
Que1999 wrote:
Fri May 18, 2018 2:54 am
I called Chase to make an extra principal payment of $5,000 yesterday towards my mortgage. I made it abundantly clear, by asking and stating numerous times that I would like the full $5,000 to go towards the PRINCIPAL. Today I double-check to make sure everything is good to go, and what do I see? I see that Chase applied $4,127.50 to my PRINCIPAL... and a separate charge of $872.50(which is the cost of my monthly mortgage payment) = $5,000.

The problem is that $219.13 of that $872.50 was INTEREST. Why must these banks play games with our money? Instead of being transparent and doing as I very, very, very clearly stated that I would like the full $5,000 to go towards PRINCIPAL. So now I've sent a secure message through their customer service center and am awaiting a reply.... :annoyed

I guess, for those of you who make early principal payments towards your mortgage every now and then, take a closer look and make sure everything is on the up-and-up.
Just curious what do you perceive the difference to be since if they applied all to principal they would have just the added the interest the the amount you owe. In other words, you owe principal and you owe interest and you are charged interest on what you owe. I must be missing something because this sound like a case of a distinction without a difference. Personally, I always make additional principal payments on top of my regular payment. BTW, if you call the bank for a payoff on your home it will be the remaining principal plus interested accrued, not just your remaining principal.
When you pre-pay principal on your mortgage balance, you effectively move to that payment # in the amortization chart. By pre-paying $5,000 towards my principal, I've moved in my amortization chart from payment # 280 to payment #288. The interest of those 8 payments equals(it isn't tax deductible for me anymore after the tax changes) $1,919. I saved $1,919 dollars by paying $5,000 towards my principal balance and moved up 8 payments. They tried to sneak in $219.13 in interest in there but I was able to catch it, and they will now be applying that money directly to the principal... Which is what I wanted in the first place. That's $219 back into my pocket. These savings don't apply if you pre-pay mortgage payments, because built into the payments is the interest.
I think if you calculate it out, you will find you didn't save $219 in interest because of changing the way it was applied. It is probably more like a dollar. It would be the $219 x your interest rate /12 and maybe less depending how far you made the $5k payment before the next payment was due.

UpperNwGuy
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Re: Chase CS playing games w/me

Post by UpperNwGuy » Sat May 19, 2018 11:12 am

I’ve never heard of anyone making an extra principal payment mid-month. Usually it is done as an add-on to the regular monthly mortgage payment. I’ve also never heard of anyone doing it over the phone when there is an online system. I think OP managed to confuse a Chase customer service rep by taking an unorthodox approach.

Trism
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Re: Chase CS playing games w/me

Post by Trism » Sat May 19, 2018 6:19 pm

The Wizard wrote:
Fri May 18, 2018 3:29 am
Interest accumulates daily.
All payments pay off accumulated interest first, then principal.
So, when was your last regular payment and how many days have elapsed?

Only way to apply entire extra amount to principal reduction is to add it on top of a regular payment.

Sounds like their CS person was inexperienced and doesn't understand how their computers work. CS person should have said: No, that will not be possible...
Most mortgages are NOT simple interest loans.

The amount of interest you pay in a month doesn't vary if you make the payment 29 days early or 14 days late (late fees commonly kick in after a payment is 15 days past its due date).

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Que1999
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Re: Chase CS playing games w/me

Post by Que1999 » Sat May 19, 2018 7:19 pm

michaeljc70 wrote:
Sat May 19, 2018 9:56 am
Que1999 wrote:
Fri May 18, 2018 3:07 pm
TheTimeLord wrote:
Fri May 18, 2018 9:01 am
Que1999 wrote:
Fri May 18, 2018 2:54 am
I called Chase to make an extra principal payment of $5,000 yesterday towards my mortgage. I made it abundantly clear, by asking and stating numerous times that I would like the full $5,000 to go towards the PRINCIPAL. Today I double-check to make sure everything is good to go, and what do I see? I see that Chase applied $4,127.50 to my PRINCIPAL... and a separate charge of $872.50(which is the cost of my monthly mortgage payment) = $5,000.

The problem is that $219.13 of that $872.50 was INTEREST. Why must these banks play games with our money? Instead of being transparent and doing as I very, very, very clearly stated that I would like the full $5,000 to go towards PRINCIPAL. So now I've sent a secure message through their customer service center and am awaiting a reply.... :annoyed

I guess, for those of you who make early principal payments towards your mortgage every now and then, take a closer look and make sure everything is on the up-and-up.
Just curious what do you perceive the difference to be since if they applied all to principal they would have just the added the interest the the amount you owe. In other words, you owe principal and you owe interest and you are charged interest on what you owe. I must be missing something because this sound like a case of a distinction without a difference. Personally, I always make additional principal payments on top of my regular payment. BTW, if you call the bank for a payoff on your home it will be the remaining principal plus interested accrued, not just your remaining principal.
When you pre-pay principal on your mortgage balance, you effectively move to that payment # in the amortization chart. By pre-paying $5,000 towards my principal, I've moved in my amortization chart from payment # 280 to payment #288. The interest of those 8 payments equals(it isn't tax deductible for me anymore after the tax changes) $1,919. I saved $1,919 dollars by paying $5,000 towards my principal balance and moved up 8 payments. They tried to sneak in $219.13 in interest in there but I was able to catch it, and they will now be applying that money directly to the principal... Which is what I wanted in the first place. That's $219 back into my pocket. These savings don't apply if you pre-pay mortgage payments, because built into the payments is the interest.
I think if you calculate it out, you will find you didn't save $219 in interest because of changing the way it was applied. It is probably more like a dollar. It would be the $219 x your interest rate /12 and maybe less depending how far you made the $5k payment before the next payment was due.
The prior payment was cancelled, and a new debit of $5,000 directly to principal was applied... So it appears I did save the $219?https://imgur.com/7OzkGB7

michaeljc70
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Re: Chase CS playing games w/me

Post by michaeljc70 » Sat May 19, 2018 7:25 pm

Que1999 wrote:
Sat May 19, 2018 7:19 pm
michaeljc70 wrote:
Sat May 19, 2018 9:56 am
Que1999 wrote:
Fri May 18, 2018 3:07 pm
TheTimeLord wrote:
Fri May 18, 2018 9:01 am
Que1999 wrote:
Fri May 18, 2018 2:54 am
I called Chase to make an extra principal payment of $5,000 yesterday towards my mortgage. I made it abundantly clear, by asking and stating numerous times that I would like the full $5,000 to go towards the PRINCIPAL. Today I double-check to make sure everything is good to go, and what do I see? I see that Chase applied $4,127.50 to my PRINCIPAL... and a separate charge of $872.50(which is the cost of my monthly mortgage payment) = $5,000.

The problem is that $219.13 of that $872.50 was INTEREST. Why must these banks play games with our money? Instead of being transparent and doing as I very, very, very clearly stated that I would like the full $5,000 to go towards PRINCIPAL. So now I've sent a secure message through their customer service center and am awaiting a reply.... :annoyed

I guess, for those of you who make early principal payments towards your mortgage every now and then, take a closer look and make sure everything is on the up-and-up.
Just curious what do you perceive the difference to be since if they applied all to principal they would have just the added the interest the the amount you owe. In other words, you owe principal and you owe interest and you are charged interest on what you owe. I must be missing something because this sound like a case of a distinction without a difference. Personally, I always make additional principal payments on top of my regular payment. BTW, if you call the bank for a payoff on your home it will be the remaining principal plus interested accrued, not just your remaining principal.
When you pre-pay principal on your mortgage balance, you effectively move to that payment # in the amortization chart. By pre-paying $5,000 towards my principal, I've moved in my amortization chart from payment # 280 to payment #288. The interest of those 8 payments equals(it isn't tax deductible for me anymore after the tax changes) $1,919. I saved $1,919 dollars by paying $5,000 towards my principal balance and moved up 8 payments. They tried to sneak in $219.13 in interest in there but I was able to catch it, and they will now be applying that money directly to the principal... Which is what I wanted in the first place. That's $219 back into my pocket. These savings don't apply if you pre-pay mortgage payments, because built into the payments is the interest.
I think if you calculate it out, you will find you didn't save $219 in interest because of changing the way it was applied. It is probably more like a dollar. It would be the $219 x your interest rate /12 and maybe less depending how far you made the $5k payment before the next payment was due.
The prior payment was cancelled, and a new debit of $5,000 directly to principal was applied... So it appears I did save the $219?https://imgur.com/7OzkGB7
Had you left it, your next payment would have gone all to principal, so you didn't save $219.

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