My mortgage contract permits me to pay in advance without penalty. I am paid 6 months in advance, when I attempt to pay seven months the lender argues I may pay no more than six months in advance and refuses to apply additional payments. They are unable to direct me to any provision in the contract containing the six month limitation. Is my lender in breach of contract, and if so, what are my options?
1 Answer from Attorneys
It probably is that their system is incapable of handling any further payments. What I would suggest is that if you are wanting to get ahead more, put those payments in an interest bearing account, where you earn the interest. Then you have the funds available to keep up the payments or, in the future you can make a sizeable payment on the principle.