Rate Your Mortgage Revisited

I described the conditions when mortgages were paid before their due date on the first of the month in the first article. This update describes the outcome when I made the February payments. These payments were made between the first and sixteenth of the month.

Wells Fargo and Saxon Mortgage were paid using their online websites on February 12, 2010. Wells Fargo did not charge for using this payment feature. Saxon Mortgage used Western Union to process their online payment and charged $2.50 for this service. The information from the previous article remained consistent regarding the fees charged and payment method.

I used First Class Postage and mailed the February payment to First Horizon / MetLife. Dancing Snoopy Dog did not get the extra $11.00 processing fee for online payment. I saved the fee and paid an $11.00 to principal reduction.

Everhome Mortgage surprised me with their fee. Based on their payment information:

“Pay Online – And make a one-time payment. There’s no fee when you submit your payment on or before the due date. There is a $12 fee for payments received after the due date. Payments received by 5:00 p.m., EST will be posted the same day. Payments received after that time will be credited the next business day.”

“Pay by Phone:
Call us toll-free at 800.669.9721. You’ll enter your loan number and then select option 6.”
The pay by phone option did not inlcude the information regarding the fee. That information is probably provided during the transactions via pre-recorded messages. I did not make the call to utilize the service.

I wrote a check (with my account on the information line) and mailed it with the EverHome Mortgage coupon via USPS Priority mail. The USPS services cost is $4.85 and provides delivery confirmation. I would rather pay the extra postage for enhanced processing to the United States Postal Service than what I consider an undeserved or unearned $12.00 to EverHome Mortgage. I thought First Horizon / MetLife was expensive for using their online service early or not, but the $12.00 fee charged by EverHome Mortgage really took the cake. To add insult to injury, the mortgage with EverHome is an FHA/HUD mortgage form 1996.

If I can “afford” to pay a late fee or voluntary $11.00 or $12.00 for online payment each month, I can afford “Feed my kitty”. I use their fees to make a higher payment and use it to reduce the principal. I pay myself first and a little more each month. By paying the fees to my own account then I feel that I am getting over on EverHome and Snoopy has less reason to dance.