Loan – Principal Only Payment

October 18, 2023
November 16, 2023

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 290Select the folder 0_Customer Folders _ TPO
    • Loan Starting with 940, 540, 840Select the folder 0_Customer Folders _ PORT
    • Loan Starting with 390, 840Select 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