Making additional payments toward mortgage principal

[TheBajan]

My mortgage payment is $1,717.83 a month. Before BK I had it paid automatically but now I write a check every month. It would be easier to write a check for $1,720.00 than for the exact amount so I'm wondering if that's allowed? I don't want to send in $2.17 extra just to have them reject the payment or mess up my BK. Is this okay in a chapter 13?

Thanks much!

[pamkev]

Don't know the answer but I can't see why it would hurt

[HHM]

I don't see why that would be a problem. I do the same thing (although I am not in bankruptcy), the overage gets applied to the principal balance.

[LadyInTheRed]

When my Bank of America mortgage payment decreased because of the variable rate, I decided to keep paying the higher payment with the expectation that the extra would be applied to principal, which is what it says on the statement will happen with an overpayment. After a couple of months, I noticed the statement showed an "unapplied balance." I called the bank and was immediately transferred to the bankruptcy department. They said that if I was going to pay more than the required payment, they would hold it as an unapplied balance instead of applying it to principal and I would earn no interest on that money. If I wanted extra payments applied to principal, I would have to call them every month after they received the payment. It took two calls and a nasty letter to get the unapplied balance applied to principal. I decided to just send the minimum payment until I am discharged.

[TheBajan]

LIR,
Thanks for the helpful insight. This is what I I was wondering. I know it's not a lot but I just don't want to deal with that kind of frustration.
Cheers!

[andy158]

I round up all my monthly payments. Makes is easier to do the math (hehe). Remember I'm from West Virginia.

Seriously though, I make three mortgage payments each month and round each up to the next $5 amount. i.e. $502.38 becomes $505 etc. Any extra is applied to principal. Do it with car payments and utilities too. Never had any problems.

If you are dropping $100 or $200 additional each month, that could raise an eyebrow.