Legal Question in Business Law in Texas

Bi-Weekly Payments on Mortgage

I have set my Internet banking to send a half a mortgage payment bi weekly. So on the 1st of the month the total amount that is due has already been sent to the company. I do this for two reasons 1. To make the budget easier and 2. to save money on interest (since biweekly payments will cut off at least 7 years of your loan). Washington Mutual advised that if they get a partial payment they will not post it to the account until the full payment is made; unless I call a vendor of theirs that sets up biweekly payments and pay 200 dollars for the set up fee and an additional 5 bucks a payment fee for the service. Is it legal for Washington Mutual to not post my partial payment immediately after they receive it unless I pay a fee?


Asked on 2/19/04, 12:23 pm

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Bi-Weekly Payments on Mortgage

Probably. Read your mortgage carefully to see what you can, and cannot, do.

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Answered on 2/19/04, 1:29 pm
Charles Williamson Charles J. Williamson, Attorney At Law

Re: Bi-Weekly Payments on Mortgage

You may be able to answer your own question by referring to your mortgage documentation. If loan agreement spells out what payments will be acceptable and how those payments are to be made, then you are bound by the agreements you, yourself, have signed. Until you have given a detailed reading to your own documents, no reliable further answer is possible.

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Answered on 2/20/04, 10:31 pm


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