Loan – Principal Only Payment

A principal-only mortgage payment, also known as an additional principal payment, is a supplementary payment applied directly to your mortgage loan principal amount.

Rules and Restrictions

Current monthly mortgage payment due must be paid

Client CANNOT be past due

Recommended to review closing documents to see if loan has a prepayment penalty

Must make the payment separately from the monthly mortgage payment

A memo must be included in payment advising that payment is to be applied solely to the principal

We do not offer recurring principal only payments

Principal only payment doesn’t affect the monthly payment- monthly payment will remain the same

Prepayment Penalties

If the borrower makes any pre-payments of principal on the plan, within the first 3 years of the date of execution of this Note and Mortgage, the borrower may pay a pre-payment charge as follows

3% during the 1st loan year

3% during the 2nd loan year

3% during the 3rd loan year.

Borrower may prepay up to 20% of Unpaid Principal Balance (UPB) per year without penalty. Prepayments in excess of 20% per year are subject to penalty. The prepayment penalty is payable entire UPB if loan is paid off in full.

Accepted Payment methods for Principal Only payment

Wire

Check

External Bank Bill Pay

ACH Debit is NOT accepted

– PROCEDURE: LOCATING A LOAN DOCUMENT IN THE LOAN ADMIN DRIVE

Open File Explorer

Navigate to the Loan Admin Drive

The Borrower’s Quontic Loan number determines the folder you will locate the clients loan documents

Loan Starting with 290 – Select the folder 0_Customer Folders _ TPO

Loan Starting with 940, 540, 840 – Select the folder 0_Customer Folders _ PORT

Loan Starting with 390, 840 – Select the folder 0_Customer Folders _LHFS

Loan starting numbers can be in different folders based on the type of loan, and you’re having trouble locating a client in one folder, it’s a good practice to check other relevant folders

In the upper-right corner of File Explorer, you should see a search bar. You can use this search bar to search for the client either by their name or loan number. and press “Enter.”

Review the search results to locate the client’s folder.

Select the client’s folder.

Inside the client’s folder, select the first sub folder which is the date the loan was entered into our systems

Funding Folder includes but not limited to:

Various Closing Documents

Documents that were created or signed prior to or at closing