Unapplied funds in loan payment
I recently bought a house and started a loan with wellsfargo. I set the payment to be semi-monthly, and I had 50% of the monthly payment deducted on 5/15. However, when I went to WF online, it said that the payment has not been used to pay the loan, details as below: We have received funds that are not sufficient to make a full payment on your loan. If we are automatically withdrawing your payments based on a recurring weekly, bi-weekly, or semi-monthly schedule, your funds remain unapplied until we have received an amount sufficient to make a full monthly payment for you. I thought that semi-monthly payment would lower the total interest because comparing to monthly payment, I paid down the loan 15 days earlier with some money. but obviously the payment is not effective until they are full. Then why does WF have all these payment options when their all have the interest reduction pace? TC: 170K YOE: 4
Your first mistake was choosing a bank notorious for screwing over its customers.
I felt that during the process. Unfortunately I didn’t have a choice because this is a new construction and the lenders were kinda designated.
That is strange. I’ve never done new construction before.
There is a lot of BS in this industry. Mortgage company just wants payment once a month. Lots of shady loan processor companies will offer schemes to reduce interest by changing payment frequency, and charge you a fee on top of this. Screw them; best solution is to pay your monthly payments directly, and then whenever you can, pay additional principal only payments of any amount you want.
They need to get digitalized. I really hate printing out PDFs and signing them and scanning them back to PDFs.
Then just sign them on your iPad with Pencil, or your Surface with a stylus. I never print anything anymore.
To give you the impression of being useful but really being dicks.