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lehart2 · Joined: 28 Oct 2009 Posts: 1 1.44 Dollars($)

Closed on Cash Out Refinance on 9-30 and the Broker group is still holding my Loan, and has not sold it off yet. Paid them the proper monthly payment due Nov 1, but paid early on 10-22. They are charging me $504 in interest for the month, when the Loan is only 21 days old, and do not accept my right to early payment and interest reduction. The say that early payment does not prevent me from having to pay the month of interest (between 10-1 and 10-31, I suppose is their reference).

Loan interest for 21 days should have been 347.97 which would put 288.17 toward principle and 389.60 in Escrow. Instead only 132.14 went toward principle, forcing me to have to pay additional interest on 156.03 which increases my principle balance.

No information or agreement was ever offered or approved concerning a mandated amount of interest to be paid.

Under Texas (and Federal) Law, can't a mortgage be paid early, thus reducing the interest, regardless who is holding the Loan??

What is the best way to get this rectified, and what agency is the best for filing a complaint?

jveenstra · Posted: Wed Oct 28, 2009 2:33 pm Post subject: Payment

Early payment does not change the monthly payment due November 1st.

The first of every month you have a principal and interest payment due. That never changes until the entire loan is paid off. It does not matter what day of the month you pay it and you do not incur a late charge even if paying up to 15 days after the due date.

If you ever pay extra, the loan will be paid off faster, however, until paid off the same payment is due the first of every month.

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Can a Mortgage Broker demand a full month interest if you pay early?