/ The Resting Place. #791
- Aug 31, 2001
- South Bend, Indiana (near)
- Power Trac PT425 2001 Model Year
Yes. We had to notify them if we were going to skip a payment. If we didn't, it was considered delinquent. And we had to notify them that anything more than the scheduled payment was to be applied to the principle.Be careful with that thinking. Many people get into trouble because they think making extra payments allows them to skip. This is rarely the case. It changes the payments on the back end, not the front end. Most institutions will charge late fees and report missed payments if you just skip a payment, even if you have been paying extra. The banks that don't do that are often just applying extra payments the same as a regular payment, just sooner. (Meaning they aren't applying it all to principal). You still finish sooner, but end up paying a lot more. Some make you specify principal only on the extra payment. Caveat Emptor.
And yes, any you decide to skip get added on to the end, and no interest debt is forgiven. So yes, you end up paying more at the end. However, if you're already 250 payments into a 360 payment mortgage, it's mostly principle added onto the end, and not so much interest.