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My friend's mortgage statement had a line item for principal curtailment - we're not sure what it is.

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

why did my bank take $73.92 out of my checking account for a principal curtailment,if i did not ask or authorize? We have been living in our house for 2 years, this is the first time this has happened. I did not even know what a principal curtailment was until i googled it. Thanks

Like | Dislike | Share | Posted: Fri, 06/22/2012 - 12:55 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi coco,

You should contact your lender and ask for an explanation regarding this matter. It is the lender who will be able to let you know as to why they deducted the money from your account.

Thanks.

Jerry

Like | Dislike | Share | Posted: Mon, 06/25/2012 - 03:50 | Post subject:

jon.underwood.007's picture
jon.underwood.007 | Joined: September 3, 2009 07:23 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

A borrower is required to pay the scheduled P&I amount each month. In addition, a borrower can pay an extra amount to be applied directly on the unpaid loan balance. This amount is called a curtailment. It shortens the life of the loan. A few extra dollars per month can save thousands of dollars in payment of interest. Extra principal payments do not relieve a borrower from making a scheduled payment each month

Like | Dislike | Share | Posted: Tue, 09/08/2009 - 02:36 | Post subject:

annyb27's picture
annyb27 | Joined: July 7, 2009 03:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Mortgage Principal Curtailment – Borrowers can send extra payments to reduce their principal balance. Curtailments are not a significant contributor to prepayments (typically less than .25 CPR).

Like | Dislike | Share | Posted: Sat, 07/11/2009 - 11:02 | Post subject:

annyb27's picture
annyb27 | Joined: July 7, 2009 03:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Principal curtailment is an additional payment paid directly against your mortgage loan's principal balance.

Like | Dislike | Share | Posted: Sat, 07/11/2009 - 11:09 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We had never seen it listed as such on a statement - I'd always seen "additional payment on principal" on my online statements. He had stopped in at the institution because their website was having trouble, and paid in person - his next statement listed it as mortgage principal curtailment. Again, thanks - we thought that was what it was, but the difference from the normal turns scared us a little!

Like | Dislike | Share | Posted: Mon, 07/13/2009 - 16:08 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Fannie Mae has come up with certain instructions regarding mortgage principal curtailment. According to the new instructions, the borrower may not be given any cash back at the time of closing. If you get any cash back at the time of closing, it should be applied as a principal curtailment to the new loan. Also, you should note that the maximum amount which may be paid to reduce the principal is $250.

Like | Dislike | Share | Posted: Sat, 08/29/2009 - 02:51 | Post subject:

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