I called Wells Fargo and they said they would help to make adjustments so that the payment goes to the principal. Since both my husband and I are working and have a lot of extra income right now, I hope to make extra payments into the principal and to own the house before we reach 50. I have seen many people over 50 lose their jobs and can’t afford to make house payments.
Some people advised us against this because we would lose the tax advantage but I think we are not discipline enough to not spend the money if it is sitting in the bank. I rather have my money in the house or 401k.
[quote=UCGal][quote=carlsbadworker]When making payments, you will need to specify whether it goes to extra principle or it is a pre-payment for next month. The default is the latter for most mortgage. But you can call them to make sure that $40K goes into principle when you make that extra payment.[/quote]
This!
I learned this the hard way and am now a payment ahead, when I wanted to be paying towards the principal.
Fortunately, I noticed it and made the adjustments. (I’ve been making extra principal payments pretty aggressively in the hopes of being 100% debt free soon.)[/quote]
