This article explains how to make monthly mortgage payments using a Cashier’s Check or Certified Check, how those payments are applied, and what to expect when sending physical check payments.
Table of Contents
- What Is a Cashier’s or Certified Check?
- What Is a Monthly Check Payment?
- How to Send a Monthly Check Payment
- How Check Payments Are Applied
- Processing Times and What to Expect
- How Monthly Check Payments Impact Your Loan
- Important Things to Confirm Before Mailing a Check
- Next Steps
What Is a Cashier’s or Certified Check?
A Cashier’s Check is a check issued and guaranteed by a bank. A Certified Check is a personal check that the bank verifies and guarantees for payment.
- Both forms are considered secure, guaranteed funds.
- They are commonly used for large payments.
- Banks may charge a small issuance fee.
Unlike ACH payments, cashier’s and certified checks must be physically delivered and processed before being applied to your loan.
What Is a Monthly Check Payment?
A monthly check payment is a payment made toward your required mortgage amount using a cashier’s or certified check.
Your check may include:
- The required monthly payment amount
- An additional amount designated for Principal Only
Any additional principal amount will reduce your loan balance once processed, if clearly designated.
How to Send a Monthly Check Payment
To submit your monthly payment by cashier’s or certified check:
- Obtain official mailing instructions from your loan servicer.
- Request a cashier’s or certified check from your bank.
- Make the check payable exactly as instructed by your servicer.
- Write your loan number clearly in the memo line.
- If sending additional principal, write “Principal Only” in the memo line.
- Mail the check to the verified payment address using a trackable delivery method if possible.
Always confirm the correct mailing address through an official secure channel before sending funds.
How Check Payments Are Applied
After your check is received and cleared, funds are applied according to your loan agreement and billing cycle.
In most cases, payments are applied in the following order:
- Accrued interest (if applicable)
- Scheduled principal
- Additional principal (if clearly designated)
If no designation is included, extra funds may be applied toward future payments or outstanding interest instead of directly reducing principal.
Processing Times and What to Expect
- Delivery time depends on your chosen mailing method.
- Processing begins once the check is received.
- Funds must clear before being fully applied to your account.
- Your Mortgage Dashboard will update after posting is complete.
To avoid late posting, mail your payment several business days before your due date.
How Monthly Check Payments Impact Your Loan
Making timely monthly payments using guaranteed funds helps:
- Maintain your loan in good standing
- Reduce your principal balance
- Support ongoing rate adjustments within SRM structures
- Maintain consistent repayment progress
Because interest accrues based on your remaining principal balance, reducing principal earlier can positively affect long-term costs.
Important Things to Confirm Before Mailing a Check
- Is the payment address verified and current?
- Is your loan number clearly written in the memo line?
- Have you indicated “Principal Only” if sending extra funds?
- Are you allowing enough mailing time before your due date?
- Have you kept proof of payment or tracking confirmation?