How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Dimitry Esquire Your Own Question
Dimitry Esquire
Dimitry Esquire, Attorney
Category: Real Estate Law
Satisfied Customers: 41220
Experience:  JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin
18572087
Type Your Real Estate Law Question Here...
Dimitry Esquire is online now
A new question is answered every 9 seconds

We took out a mortgage on our home monthly payment is 926 paid

Customer Question

we took out a mortgage on our home monthly payment is 926 paid 2000 they applied 668.39 to principal we were told anything paid over the monthly amount due would be applied to principal 1000.00 was applied to interest is this legal in minnesota
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Dimitry Esquire replied 1 year ago.
Thank you for your question. Please permit me to assist you with your concerns. I am sorry for your situation. Did you owe any sort of outside interest on this mortgage when you wrote the check, or were you completely paid up?
Customer: replied 1 year ago.
No that was are first payment
Expert:  Dimitry Esquire replied 1 year ago.
Hi, Most loans are deemed to be 'LIFO', which means 'last in, first out'. This typically refers to interest payments, so if there is an outstanding interest, it gets paid off first before the principal is touched. BUT if no interest is owed, then the funds go toward principal unless your agreement denotes something else in writing. Hence, review the language of your mortgage terms, but if you have the 'LIFO' clause then the actions of the lender are in violation of the terms of the agreement. Sincerely, ***** *****

Related Real Estate Law Questions