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How to Ensure Extra Mortgage Payments Go Toward Principal Balance

Learn how to make sure your extra mortgage payments are applied directly to the principal with simple steps and lender confirmation.

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Video transcript

To ensure extra payments go to the principal, you should clearly indicate this when making a payment. Note it as 'Principal Only' in the memo line of your check or in the payment portal of your bank's website. Confirm with your lender by phone or email to ensure they apply it correctly.

Questions and answers

  1. Why should I specify that extra payments go to principal?

    Specifying that extra payments go to principal ensures that your lender applies the additional amount directly to reducing your loan balance, which can lower interest over time.

  2. How do I indicate extra payments are for principal only?

    You can write 'Principal Only' in the memo line of your check or select this option in your lender’s online payment portal to ensure correct application.

  3. Can I confirm that my extra payment was applied to the principal?

    Yes, contact your lender by phone or email to verify that your extra payment was applied correctly to the principal balance.

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For more advice on managing your mortgage and reducing debt faster, explore related content on effective repayment strategies and understanding loan amortization schedules.