If you have a mortgage with US Bank and pay additional principal, please read this:
I am extremely unhappy with this bank and I want to pay the 15 year loan soon as possible. To lower my balance I send additional principal in addition to my regular monthly payment.
U.S. Bank Home Mortgage arbitrarily allocates the additional principal payment to un-accrued future interest paid in advance, instead of lowering the outstanding balance by the amount of additional principal included.
Every month I have to call the bank and they claim that an error was made and they credit the future interest payments to principal. The following month I have to go through the same routine to avoid being robbed again.
In my case, I have the statements to prove that deliberate FRAUD is committed every month. Here are two examples of fraudulent activity:
For September 2015, I paid $4000, which included $2,672.71 as additional principal. Only $613.97 went to principal reduction. They paid themselves future interest of $357.57 for October 2015.
For October 2015, I paid $4,160.46, which included $2,800 as additional principal. Only $623.90 went to principal reduction. They paid themselves future interest of $347.61 for November 2015.
The fact that U.S. Bank Home Mortgage conducts this scam month after month is a clear indication that this IS NOT an oversight, but a scam designed to rob millions of dollars from the unsuspected borrowers who believe that the additional principal payments are used to lower their loan balance What a rip-off!. I demand Customers Beware. Stay away