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.
- 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
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