Information on how your monthly payment is applied towards inter

READER QUESTION

In the monthly payment on my mortgage, how are the funds applied to principal and interest?

Read full question
Bills.com Resident Expert
Dec 12, 2011
BILL'S ANSWER

First, I am not sure why the distribution of your mortgage payments to principal and interest is changing from month to month. On a fixed rate loan, the amount being applied to principal generally increases slightly with each month you make payments. However, the application of payments on home equity lines can be somewhat more unpredictable, especially in case you are still making charges on the equity line, thus increasing the balance. If you think that your payments are not being properly applied to your accounts, you should contact your lenders to discuss the problem and find out how your payments are being credited. If after speaking with your lenders, if you still believe that your payments are not being credited accurately, you may wish to contact an attorney to discuss what recourse you have against your lender. However, I expect that once you speak with your lender, you will find that your payments are being properly applied, as it is unlikely that your lenders are purposefully misappropriating your funds.

Based on the information provided in your question, I cannot tell you whether or not a refinance loan will save you money over your current loans, though I certainly encourage you to consult with various refinance lenders to discuss the options available and the costs and benefits of refinancing your home. The 4.75% interest rate you are paying on your current primary mortgage is certainly a good interest rate, especially considering that the average rate on a 15 year fixed rate loan is currently 5.54%. Given this fact, I doubt that a refinance lender will be able to offer you a better interest rate. However, it certainly will not cause any harm to discuss your situation with lenders to find out if combining the two loans at a slightly higher rate will save you money over your current loans. To read more about refinance loans, I encourage you to visit the Bills.com Refinance page at http://www.bills.com/refinance-my-home/.

In addition, if you submit your contact information to the Bills.com Savings Center at https://www.bills.com/mortgage/mortgage_refinance/, we can have several pre-screened lenders contact you to discuss the refinance options available to you.

I wish you the best of luck in your search for a refinance loan that fits your needs, and hope that the information I have provided helps you Find. Learn. Save.

Best,

Bill

www.Bills.com

No Comments


Thanks for your feedback!

Get a Rate Quote

 
  • No Cost Mortgage Refinancing Explained

    No Cost Mortgage Refinancing Tips and Advice So That You Can Get the Best Refinance Loan.

  • Important Mortgage Loan Terms

    Mortgage loan terms can quickly become confusing. Having a better understanding of the language and terminology involved with a mortgage loan will ease the entire process.

  • Wells Fargo Home Mortgage

    Wells Fargo Home Mortgage makes home-financing easy.

  • Buy a Home with an FHA loan

    Learn How An FHA-Insured Loan Can Benefit You, When You Are Looking to Buy a Home.

  • Bank of America Refinance

    Should I refinance my home with Bank of America?

  • Debt Consolidation

    Debt Consolidation and How to Consolidate Debt - Tips and Advice to Help You Make a Wise Decision.

  • Refinance My Home

    "Help Me Refinance My Home" -- What you need to know.

  • US Bank No Closing Cost Refinance

    Can I get a no closing cost refinance with US Bank if I'm a customer?

  • Debt Relief

    Debt Relief Options | Learn about and compare all debt relief options, including: Debt Consolidation, Credit Counseling, Debt Settlement and Debt Relief Consolidation Loans - Compare All of Your Debt Relief Options for free at Bills.com.

  • Fifth Third Bank Mortgage

    At Fifth Third, we work hard to be a successful, principled, involved financial institution that serves its customers and community. Since its beginning, Fifth Third has provided superior customer service and followed sound banking principles.

  • Washington Mutual

    Washington Mutual offers mortgage loans across the western United States. See how they are rated by Bills.com and by their own users.

  • Government Debt Relief

    What you need to know about Government Debt Relief and Grants.

  • US Bank Home Mortgage

    US Bank Mortgage is home of the Five Star Service Guarantee. See what Bills.com rated US Bank Mortgage, and add your own personal feedback and rating.

  • HSBC Mortgage

    HSBC Bank USA Inc. is one of the nation\'s 10 largest banks. HSBC Mortgage offers a full suite of mortgage and refinance loan products. Read what our users have said and how they rated HSBC Mortgage.

  • Bank of America Mortgage

    As one of the nation's mortgage leaders, Bank of America Mortgage maintains strong client relationships with responsiveness, innovation, and market knowledge. Bank of America offers a variety of loan products, including home purchase and refinance loans.

  • Debt to Income Ratio

    What is the maximum debt to income ratio one can have when getting a loan.

  • Credit Counseling

    Learn the Pros and Cons of Credit Counseling Services, and How to Make Credit Counseling Work For You.

  • Chase Mortgage

    Chase Mortgage is committed to building vibrant communities, preserving our environment and promoting an inclusive culture that benefits our shareholders, customers, employees, neighbors and future generations.

  • Consolidate Debt

    Consolidate Debt & Consolidate Bills: The Debt Tips You Need to Know.

  • PHH Mortgage

    PHH Mortgage is one of the top ten originators of retail residential mortgages in the United States. Their goal is to provide you with the superior service you deserve, guaranteed.

  • FICO Score Calculation

    How do I figure my FICO score?

  • Home Refinance Options

    Explore Your Options to Tapping Into Your Home Equity Including a Cash-Out Refinance or HELOC.

  • National City Mortgage

    National City Mortgage is one of the nation\'s largest financial holding companies. They offer a full line of mortgage products, including refinance, purchase loans, debt consolidation and all mortgage products.

  • Refinance for more than 100 percent LTV

    Bill answers a users question: Will I still be able to do refinance if my loan to value is over 100 percent?

  • Debt Consolidation Loans

    What is the Best Kind of Debt Consolidation Loan?

Thank you for subscribing!