For the last four years I've been paying $50 extra on a retail loan secured by a home, but have failed to specify that it go to princple (thought that happened automatically).

1. Monthly payment is 575.
2. I pay 625.
3. Last statement showed me 4 months ahead and a payment due of 135, that's 135 at the future four month mark.
4. I've calculated I've paid roughly 2400 extra over the four years.

I'm trying to determine if there is anyway to get the 2400 back--if that's the right way to look at it?

What if over the next three months I made a payment of 625 and specified the entire amount go to princple and on the fourth month I would pay 135 as the payment and 490 to princple? And then from that point on I'll be specifing the 50 go to principle every month...

How is the loan actually structured?
Can you pay it off early without owing all of the interest?
You need to ask them if you can pay principal only payments over and above your monthly payment or NOT...

I had a goofy loan like this once. I was actually allowed to make additional payments toward the principle, BUT only if I specified. Otherwise they treated as if I was making payments toward future payments.

Pretty nice for them. Still get the same interest and have your money in their ands for the next three months.

I telephoned them and requested that they applies the money toward the principle. They did do this. That was when I was told to specify additional payments toward principle.

I would think this should be your first option as long as you are continuing to make your payments, plus fifty dollars each month. Other wise confirm that you can prepay you principle and if those payments 'must' be treated as future payments if you can send in additional principle payments.

Good Luck