If so maybe you can help. I use there online payment system.
I'm trying to pay a extra $50 every week towards the principle of my car loan, i went and looked at my payment history only to see that they are only putting $27 towards the principle and take $22 in interest! My APR is 3.3% so why would they even charge that much on $50
There is no option on there site to make a payment towards principle only! I will be giving them a phone call.
I've also been paying extra when the normal payment is due so i can only guess they are doing the same thing with the extra money in the payment.
I pay my mortgage online as well and they have a option to pay principle only. Shouldn't there be a law or something against this?
It's easy for me to pay a extra $50 a week rather that a large sum.
The only way i see them being able to do anything is to send me a payment book but then i'd use so many stamps, i think you can phone a payment in but there is a fee for doing it that way.
Best to check your loan agreement as well. Some use rule of 72 which wont allow you to pay towards the principal only. In essence they get all the interest to end of term even if you attempt to pay it off early.
I was with Wellfargo up till about 2 months ago. Iran into basically the same thing your talking about if I understand correctly. I always tried to pay at least 50.00 more each month online with them. The only thing happened is the following month my "due" would be lower and lower. Called them multiple times and told them to apply it towards the principal but they told me they could not.
They told me the only way is to mail them a payment clearly stating to apply it towards the principal. Needless to same I did a refi. through chase and got a super rate. And a Wellsfargo sent me a check for just about 1200 and change.
CPUNet, if you decide to refi, look into PenFed. I pay 2.99% with them on my auto note, and I think they're even offering 2.49% right now. I found it easy to qualify. They mostly serve military folks (Pentagon Federal...), and they're pretty cool.
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