Mortgage company charging fee for online payment

[Coronita]

[quote=sdbuyer2010]Thanks everybody for your inputs. I have scheduled payments through my chase account’s bill pay free service (central mortgage said I dont have to send the coupon if the payment has loan number on it). First payment will be Nov 1, keeping my fingers crossed.
Thanks![/quote]

Ahhhhhhhhhhhh…. Chase……….Don’t say that word !!!!!!!!!!!!!

[hogtrainer]

[quote=flu]It’s not standard. And if your mortgage company does it, please spill the beans and tell us which one so we can avoid it like a plague.

You could also open a checking account that has free bill pay to get around this.[/quote]

I’m new to this forum and site, but I want to let everyone know that PNC Mortgage charges $7.00 for online one time payment fee it sucks.

[moneymaker]

I remember years ago the CA DMV would charge a fee for online payments, then some genius must have told them that they actually save money by automating the process, don’t have to pay people to open mail and process the payment.

[FlyerInHi]

With the government, it has to do with some arcane rules that said they have to collect to full amount of taxes/fees. Credit cards take something like a 2% cut.

[spdrun]

Yep — SD charges 2% to pay taxes by card, but 0% if it’s done by e-check. And they’re right to stick it to the banksters and not encourage people to pay by card (giving the banksters a swipe fee).

So not all online payments are created equal.

[carlsbadworker]

[quote=moneymaker]I remember years ago the CA DMV would charge a fee for online payments, then some genius must have told them that they actually save money by automating the process, don’t have to pay people to open mail and process the payment.[/quote]

You mean destroying jobs to automate the process?

[spdrun]

All jobs either adapt or go away. I don’t see a huge call for steam engine firemen either.

[Anonymous]

Send the money to the mortgage company rather than having your mortgage company withdrawal the money from the bank.

[FlyerInHi]

[quote=harvey]Send the money to the mortgage company rather than having your mortgage company withdrawal the money from the bank.[/quote]

Yeah, you can do that using billpay from your bank. The bank sends the payee a check on your behalf.

But if you don’t send the remittance coupon, sometimes, they don’t credit your account correctly. That’s the problem with one of my HOAs. So I have to mail them a check every month.

[HLS]

Almost every standard mortgage payment is due on the 1st of the month and has a 15 day grace period before a late charge.
If you mail a check, you avoid any extra fees.

Contrary to what many people think, there is no benefit to paying a monthly mortgage payment early in the month. It does not improve your credit score nor does it pay off your loan any faster.

The company you send your payments to is a SERVICER, they don’t own your loan.
Each one has its own rules about paying online and whether or not they charge an additional fee after a certain date in the month.
They CANNOT charge anything extra if you send a check that is received by the 15th.

[BWood8989]

Hi all,

My mortgage was just sold to PNC, and yes they do charge $7 for a one time payment. My old mortgage company was free for this option. Is this legal?

[teaboy]

[quote=HLS]Almost every standard mortgage payment is due on the 1st of the month and has a 15 day grace period before a late charge.
If you mail a check, you avoid any extra fees.

Contrary to what many people think, there is no benefit to paying a monthly mortgage payment early in the month. It does not improve your credit score nor does it pay off your loan any faster.

The company you send your payments to is a SERVICER, they don’t own your loan.
Each one has its own rules about paying online and whether or not they charge an additional fee after a certain date in the month.
They CANNOT charge anything extra if you send a check that is received by the 15th.[/quote]

If you have a mortgage rate of 3.5%, a monthly payment of $2500, and you pay on the 15th instead of the 1st, you get charged 3.5% interest on that $2500 for 15 days every month, I believe.
BTW, that would work out to $43.15/year.

tb

[Coronita]

[quote=teaboy][quote=HLS]Almost every standard mortgage payment is due on the 1st of the month and has a 15 day grace period before a late charge.
If you mail a check, you avoid any extra fees.

Contrary to what many people think, there is no benefit to paying a monthly mortgage payment early in the month. It does not improve your credit score nor does it pay off your loan any faster.

The company you send your payments to is a SERVICER, they don’t own your loan.
Each one has its own rules about paying online and whether or not they charge an additional fee after a certain date in the month.
They CANNOT charge anything extra if you send a check that is received by the 15th.[/quote]

If you have a mortgage rate of 3.5%, a monthly payment of $2500, and you pay on the 15th instead of the 1st, you get charged 3.5% interest on that $2500 for 15 days every month, I believe.
BTW, that would work out to $43.15/year.

tb[/quote]

It doesn’t work that way. If it did, your 30 year mortgage wouldn’t amortize over 30years but longer. So long as you don’t miss the grace period, it doesn’t matter when you pay. There are some programs that claim to reduce your mortgage via a bi weekly payment. But that’s no different if you just made one or two extra principal payments every year. Because when you go on a biweekly payment term, there’s one or two months you make more than two payments per month (as opposed to bimonthly)

[Author]

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