What Are My Monthly Mortgage Payment Options
PNC offers the following payment options to make your monthly mortgage payment:
Electronic Funds Transfer / Auto Draft: This free recurring service can be established to withdraw your monthly mortgage payment from your designated checking or savings account on the same day each month. To pay your mortgage loan off faster, you can elect to make additional principal payments with each monthly payment. You may also select the day you would like your mortgage payment to draft, e.g. you may choose from the 1st to the 15th of the month. To enroll, complete the EFT Enrollment form located in our Important Forms & Documents page, or call with questions.
We also have a Bi-Weekly Draft Program that helps you pay off your loan faster and reduce interest payments. Youll make ½ of a monthly payment every 2 weeks, for a total of 13 monthly payments per year instead of 12.
Plus, this extra payment will automatically be applied to your principal balance, reducing the total interest you will pay on your mortgage. The funds from your first ½ payment each month will be held in a non-interest bearing account, and will be applied once a full monthly payment is received.
To learn more about our bi-weekly draft program, visit our Important Forms & Documents section for more details and an enrollment form.
PNC Bank Branch Payments: PNC mortgage payments may be paid at any PNC branch location. To locate the branch nearest you, .
PNC Mortgage Payments
P.O. Box 771021Chicago, IL 606077
Keep Your Payments The Same When Changing Your Mortgage
When you renew your mortgage, you may be able to get a lower interest rate.
Some mortgage lenders may allow you to extend the length of your mortgage before the end of your term. Lenders call this early renewal option the blend-and-extend option. They do so because your old interest rate and the new terms interest rate are blended.
When your interest rate is lower, you have the option to reduce the amount of your regular payments. If you decide to keep your regular payments the same, you can pay off your mortgage faster.
Should I Make Biweekly Mortgage Payments
Your home is likely the biggest purchase you will ever make. Even with an interest rate in the single digits, this can often mean tens or hundreds of thousands in interest charges over the life of your repayment a significant chunk of change that you probably wouldnt mind keeping in your pocket.
Luckily, lenders like Rocket Mortgage® make biweekly payments simple for clients. Thanks to Rocket Mortgage®, these borrowers can set up biweekly mortgage payments for free online. There are no prepayment penalties or fees for setting up a revised payment schedule, either, so youre able to automate the process and save yourself money with just a few quick clicks.
What could you do with those kinds of savings? For other articles like this one, check out our free personal finance resource center for more information.
Apply Online with Rocket Mortgage®
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How Much Faster Do You Pay Off A Mortgage With Biweekly Payments
Biweekly payments accelerate your mortgage payoff by paying 1/2 of your normal monthly payment every two weeks. By the end of each year, you will have paid the equivalent of 13 monthly payments instead of 12. This simple technique can shave years off your mortgage and save you thousands of dollars in interest.
How Smart Are Biweekly Payment Plans
A biweekly plan will save you a lot of interest over the life of your loan, but it’s only a smart move if the extra payments work for you. You’re essentially paying the equivalent of one additional mortgage payment each year, so you should be sure you can budget for that. It’s also smart to compare your interest savings to what you could potentially earn by investing that extra payment instead.
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Know Your Rights Under The Law
Under the Real Estate Settlement Procedures Act , your servicer must
- acknowledge your letter in writing within five business days of getting it
- correct your account or determine instead that there is no error generally, within 30 business days
- send you a written notice of the action it took and why, and the name and phone number of someone to contact for more information or help
You have a 60-day grace period after a transfer to a new servicer. That means you cant be charged a late fee if you send your on-time mortgage payment to the old servicer by mistake and your new servicer cant report that payment as late to a credit bureau.
Which Payment Option Is Right For Me
Some homeowners who switch to biweekly payments save a significant amount on the cost of their mortgage loans while others don’t save that much. How this type of payment schedule will work out depends on a variety of factors, including the terms of your mortgage loan and fees for switching to biweekly payments.
When youre ready to talk about mortgage payment options and how they might be able to help you reduce the amount of interest you pay over the life of your loan, connect with our team of home lending advisors.
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Should I Pay Off My Mortgage
Just because you can pay off your mortgage early doesnât necessarily mean that you should. Of course, it would feel great to rid yourself of a huge financial burden like a mortgage. But if you really want to know if itâs a good decision, you have to look at the math.
There are pros and cons to paying off your mortgage early. Whether the pros outweigh the cons will depend on your overall financial situation.
When You Shouldn’t Make Prepayments On A Mortgage
So what’s the downside? Money spent prepaying your mortgage cannot be invested or spent on other things. For example, if you know you want to remodel your kitchen in a few years, and would have to borrow money and pay interest to do so or worse yet, planned to put a lot of the work on a credit card it might make more sense to save and invest the money you’d otherwise spend on prepayments.
Also, you’ll need to balance your retirement goals against prepaying your mortgage. First off, if your employer matches contributions to a 401, you don’t want to turn away that free money.
Also take into account what you might earn by investing the money. The earlier you start saving, the more your money will grow by the time you’re retired, thanks in part to the power of compound interest: As you earn money on your investment, that cash is reinvested, earning interest on interest.
Another important financial consideration is protection against risk of job loss, death, or disability. If you have dependents, for example, you might want to buy life insurance. Disability insurance is also a good way to protect against unexpected health issues. And if you haven’t yet put aside an emergency fund that should probably take first priority.
Also realize that the financial benefits of prepaying a mortgage are, on balance, reduced a bit if you can deduct mortgage interest from your taxes.
Talk to a financial adviser for a complete analysis.
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Its Easier To Make Extra Payments
Most homeowners recognize the benefit of making extra mortgage payments. However, it can be difficult to actually find the funds to do so over the course of the year.
While this does require you to adjust your monthly budget slightly and ensure that your cash flow is set up to allow for biweekly payments the schedule makes it easier to contribute extra toward your mortgage principal each year.
Ask About Alternative Payment Plans
Even if you don’t qualify for a hardship program, it’s worth asking your creditors if they offer alternative payment plans that would make it easier to keep up with your bills.
For example, federal student loan borrowers can apply for an income-driven repayment plan. When you enroll in an IDR plan, your loan term is extended, and your monthly payment is set at a percentage of your discretionary income. Some borrowers even qualify for $0 payments, so they pay nothing and stay current on their loans.
In effect, IDR plans allow you to make partial payments, but you must be approved for the plan before you start making them.
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Can You Make Payments On A Reverse Mortgage Loan
Most people associate a mortgage with a predetermined set ofpayments, usually monthly, that you are obligated to make to your lender untilyour debt has been satisfied. This borrower-to-lenderflow of payments is known as a traditional mortgage.
A reverse mortgage reverses the process. Instead of makingmonthly payments to your lender, your lender makes payments to you.
Lets take a closer look at how this happens.
If you qualify for a reverse mortgage , the firstthing your reverse mortgage will do is pay off your current mortgage, if onestill exists. Although repayment of the old mortgage means you have no moremonthly mortgage payments, you are still responsible for maintaining your homeand paying property taxes and homeowners insurance, as you did with atraditional mortgage.
You still have a mortgage, only now its a reverse mortgage.With a reverse mortgage, monthly mortgage payments are optional. A new reversemortgage does not have to be repaid until you sell orpermanently leave the home, pass away, or fail to honor your loan terms. Itsconceivable that if you take out a reverse mortgage at 62, the earliest age toqualify for one, you could live in your current home for decades without makinga monthly mortgage payment.
How Do I Initiate A Principal Reduction Modification
A letter of request must be submitted stating that you would like to have your monthly payment re-amortized. The letter and the fee should be mailed to:
PNC MortgageP.O. Box 1820Dayton OH 45401-1820
The lump sum principal payment is usually included, but can be made at any PNC Bank, if preferred. Once the principal balance has been reduced, a Loan Modification Agreement is prepared and sent to you for your signature. Once we receive the signed document, we update our database with your new payment amount.
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Raise And Resolve Disputes Or Errors
If the servicer made a mistake or charged you a fee you dont owe, correct it as soon as possible. But keep making your regular monthly mortgage payment. Dont subtract the disputed amount from your mortgage payment. Some servicers will refuse to accept what they consider a partial payment. They could return your check and charge you a late fee or claim that your mortgage is in default and start foreclosure proceedings.
Dont write your dispute on your payment coupon or a copy of your monthly mortgage statement. Instead, contact your servicer in writing and explain the problem :
- Use the Sample Complaint Letter to write your request, including your account number and an explanation of why you think your account is incorrect.
- Gather any documents that support your request. Your records should include copies of your statements, coupon book, and paperwork showing that you made your payments . These can serve as proof of your payment history and your interactions with the servicer.
- Send your letter and copies of any documents that support your request to the mortgage servicers customer service address by certified mail and request a return receipt. This may be a different address from where you send your payments.
Keep a copy of your letter and the originals of the documents you sent.
Is There A Fee Involved In Doing A Principal Reduction Modification
The standard fee for a Principal Reduction Modification is $250, which is subject to change. The fee must be submitted up front, and is non-refundable.
To find out if your loan is eligible for a Principal Reduction Modification, call us via 800-822-5626 and ask for our Special Loans Department. Please note, your loan must be at least 6 months old before being considered for a Modification.
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Advantages Of Biweekly Mortgage Payments
Here are some ways biweekly mortgage payments can save you money and hassle:
- Shortening your loan term. Biweekly payments can shorten the time it takes to pay off your mortgage. Since a mortgage payment is often a households largest monthly expense, no longer having one can free up a lot of disposable income and open the door to other financial goals.
- Reducing your interest. Shortening your loan term will reduce how much you pay in interest on the loan. Because the principal balance is decreasing at a faster rate than was planned for in the amortization schedule based on the original loan term, youll pay less interest on that amount, saving you money.
- Simplifying budgeting. You may find it easier to budget your money with biweekly payments, particularly if you get paid every other week from your job.
- Building equity faster. The more you pay toward your mortgage principal, the faster you will build home equity that could be leveraged for future expenses or goals.
- Maintaining your credit. Credit bureaus report payments the same way either on-time or late whether youre paying biweekly or monthly. So you wont have to worry about damaging your credit, as long as you keep up with your payment schedule.
Eligibility Requirements For Partial Claim Loans
A partial claim loan is only available for consumers who can’t resume making their existing monthly mortgage payments. Mortgage servicers can evaluate borrowers for a standalone partial claim. To be eligible for a partial claim the borrower-homeowner must:
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Be between 4-12 months behind on their mortgage payment.
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Show they have enough income to make their regular monthly mortgage payments.
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Live in the property .
So itâs a good idea to contact your lender to discuss your delinquent mortgage payments. If you donât ask your lender what options you have, you could lose your property. You should also know that HUD can advance your lender up to 12 months of mortgage payments through the partial claim program.
Itâs important to get all of your financial paperwork together, including proof of your income, a financial hardship budget, debts, and bank statements to show your lender. This will give them the information they need to look closely at your financial situation and decide if you qualify for a partial claim. And if your lender asks you to provide additional paperwork to evaluate your request, itâs best to provide it to them promptly.
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What If You Overpay
If you overpay, your lender may use a suspense account as well. If you add a few dollars or even cents every time you make a payment, your lender can put the overpayment in a suspense accountIf you’re curious and want to know, you can contact your mortgage servicer to find out if you have funds in suspense.
Do Partial Payments Help
Generally, you should expect that partial payments do not meet creditor payment requirements, Christensen told The Balance by email.
A partial payment is any payment smaller than the minimum amount due, as specified by the creditor. If you dont make the full payment within 30 days, the creditor reports to the credit bureaus that your account is 30 days late. This negative report generally remains on your credit history for seven years.
If you only make partial payments, you may wind up eventually owing thousands of dollars to your creditor, which could sue you in court for breaking your original agreement. If they win, theyll likely pursue wage garnishment with your employer, Christensen said.
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Lets Look At An Example Of A Do
Loan amount: $200,000Mortgage rate: 4.25% Regular monthly mortgage payment: $983.88 1/12 of that amount: $81.99 New combined payment : $1,065.87
Total savings: $30,205 in interest Mortgage term: 309 months
Be sure that you note the extra amount is to go toward the principal balance!
If you dont make this clear, some lenders will return the surplus money, apply it to your next payment, or perhaps apply it your escrow account. Its important that this is 100% clear so the money goes to the right place.
This free biweekly mortgage method actually works in your favor for several reasons. First, you dont pay any extra junk fees to have someone do it for you.
And second, because you make an extra payment to principal each month, your loan balance is reduced each month and home equity is accrued faster.
This reduces the total amount of interest due throughout the life of the loan. So you pay less interest in a shorter amount of time. Amazing.
Additionally, its easy to execute. Youre still making 12 payments per year, so it doesnt require any extra work like actual biweekly payments.
Can I Make Partial Payments On My Mortgage In The Amount I
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