April Mortgage Payment: Posted payment half a month early

Last month (March):
Years left: 2
P =$1,103.46, I =$110.94, Escrow =$788.73

This month (April):
Years left: 1.9166666666666666667
P =$1,107.83, I =$106.57, Escrow =$788.73

One month’s prepayment savings: $0

We sent off the mortgage payment for March before February ended.  By the beginning of the second week of March it still hadn’t posted.  So we called up and were like, what happens?  They said to wait a few days and if it doesn’t post, then call up and make a payment over the phone.  No late fee until 3/15.

So we did.  On 3/11, it still hadn’t posted, so we paid via phone.

On 3/13, we checked our account and not only had our 3/11 phone payment posted, so had one on 3/9!

Which means that we paid our April mortgage payment early.  Luckily it didn’t post as a pre-payment after all that deciding to stop prepaying!

(In other news, it looks like escrow is going up $20/month starting with our May payment.  Fun times.  Fun times.  Not really.)

What do you do when a payment doesn’t post after you’ve sent it?  Do you avoid late fees or being double-billed?

15 Responses to “April Mortgage Payment: Posted payment half a month early”

  1. Holly@ClubThrifty Says:

    Yikes! Glad you had the extra money in there to cover it. The vast majority of people obviously cannot pay their mortgage early.

    I have prepaid a few times for various reasons (leaving for vacation early, etc) and one time a mortgage prepayment posted as just an extra payment, as in they still expected me to make a regular mortgage payment that month. I had to call and explain that that was my mortgage payment, just early.
    I always pay attention to my mortgage statements and our rental mortgage statements too. One time one of our mortgages deducted $1,800 from one of our escrow accounts for “for place insurance” without notifying us. For some reason, they had lost track of our landlord policy and thought we didn’t have insurance on the property. It was really weird because we hadn’t lapsed or changed insurance it all. We only pay it once per year. Anyway, if I hadn’t noticed that $1,800 debit, I don’t know what would have happened! I freaked out about it because they didn’t even notify me – they just took the money.

    • Holly@ClubThrifty Says:

      Sorry, *forced place insurance*

    • Leah Says:

      Weird — my mom’s bank just “lost” her insurance as well and were going to charge her. I find that funny. Do they just not get a notification, or misplace it? Or is it a bit more malicious in that it’s a chance for them to make more money?

      • Holly@ClubThrifty Says:

        No idea! I thought it was nuts because we definitely didn’t drop our homeowner’s insurance. It only gets paid once per year! I can’t remember all of the details, but I think it may have had something to do with us refinancing our mortgage and them losing our insurance paperwork. Still, a quick call to me and I could have told them that we kept the same insurance. Instead, they just helped themselves to $1,800 and didn’t say a word. Crazy! How is that legal?

        Once I figured out what happened, I just had to send them a copy of my insurance policy that they already had. But then they took 2 months to refund the money back into my account. Two months!

  2. Leigh Says:

    That would drive me nuts! I’m not sure what I do!

    I have the mortgage minimum payment on auto pay out of my checking account on the mortgage side and I’ve never had any problems with that. I almost paid it early when we went to NZ, but I realized it works be fine. Even though I have it on auto pay, I can make a manual payment if I want and then the automatic payment gets canceled.

    My self escrow went up a similar amount since my property taxes went up. Ah well, they’ve gone up every year I’ve lived here so far.

    • nicoleandmaggie Says:

      Mine have gone up almost every year too, (one year they went down because housing values dropped). My sister’s just doubled this year because this is the first time they’ve reassessed her house since she bought it and her house value has doubled(!)

      • Leah Says:

        If your house value doubles, does that mean your property tax amount doubles? I’m woefully underinformed about property taxes. We’re thinking about buying one of these days, and I find that the unknowns (property tax, utilities, etc) are what make me the most nervous.

      • nicoleandmaggie Says:

        It probably didn’t exactly double (either her housing value or the property tax). I don’t know the full details, but usually the first $X amount is exempt. It does vary by state and by city– in my town it isn’t allowed to go up by more than some % each year, which is why they started doing annual assessments rather than every 10 years or when the house is sold.

  3. First Gen American Says:

    I am looking forward to getting my balance below 6 figures again…but it’s going to be a while.

  4. Leah Says:

    I accidentally paid my CC twice this past month. They auto-withdraw if I haven’t paid by a certain date. I made sure to make the payment a day or two before that date. What I didn’t realize is that they initiate the auto-withdraw several days before the date. D’oh. Lesson learned.

    I had to juggle around some money but managed to make it work. I have to give a lot of credit to my bank, which gives a grace period of 24 hours if you don’t have enough money for an ACH withdrawal. But it was a huge pain. On the bright side, now I have a credit and likely won’t have to pay a bill for this month.

  5. OMDG Says:

    Gotta love the rampant incompetence. Makes one wonder if you’re the only one even attempting to do a good job.

  6. Liz Says:

    Our mortgage payment is automatically taken from the bank account every 2 weeks. When we moved to accelerated (biweekly) payments, we could choose the start date so set it to 2 days after my partners biweekly pay is auto deposited, just for convenience. I read “The Automatic Millionaire” last year (I think that was the title) and got very much on the bandwagon of having as many payments transferred automatically as possible. With the mortgage, this was actually expected by the bank, and we would have had to just through some hoops if we didn’t want the auto-transfers.

    Where I live, escrow payments are not really a thing, as far as I know, or at least not the norm. We directly pay property tax twice a year and insurance monthly. Does your escrow payment include any other costs?

    • nicoleandmaggie Says:

      I hadn’t automated this one because our prepayment amount has varied over time. I might automate it now though since we’re not planning on pre-paying over the course of the next year and I really don’t want something like this to happen again.

      Property tax and home owners insurance both go into escrow here.

  7. David Stern Says:

    The bank just automatically debits our mortgage payments from our account. Also as we have an “offset account” where the money in our checking account effectively earns the interest rate on the mortgage (yes, we earn 4.75% interest on our checking account) we have plenty of money in it. This is all in Australia of course…

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