Principal Reduction ^top
Principal Reduction
Now there's an even faster, easier way to make additional payments directly to the principal of your ESL loan.
The Account Transfer feature in Internet Banking has been upgraded to include a new feature, called "Over Payment".
Here's how it works:
Click on the Account Transfer button in Internet Banking and you will see that a new step has been added to the transfer process. Now you will be asked to choose to make either a "standard payment" or an "over payment".
A Standard Transfer is to be used for:
- Share to share transfers (for example from savings to checking)
- Share to Loan (savings to cash reserve)
- Share to Visa (checking to Visa)
- Loan to Share (cash reserve to checking)
Use the Standard Transfer to move money between shares, to make a loan payment or Visa payment, or to advance a line of credit. The Standard Transfer is the DEFAULT transfer type and is pre-selected when the "Account Transfer" page is selected.
An Over Payment Transfer with the "principal only payment" option selected, can be used for:
- Share to Loan transfers ONLY when the loan is current.
- The loan CANNOT be past due.
- The current month's payment must be completely satisfied BEFORE attempting to transfer using the Over Payment feature.
Step by Step Instructions for Principal Reduction Payment:
- While in Internet Banking, Click on "Account Summary".
- Select the "Transfer Funds" link in the blue bar.
- Fill in the "Amount" you wish to transfer.
- Select the "From Account" (account you are transferring funds from).
- Select the "To Account" (account you are transferring funds to).
- Select the "Transfer Type" (if you are making a Principal Reduction, FIRST be sure that your account is current and that you have no payment currently due.) Select the Over Payment radio dial.
- Select the "Principal Only Payment" option from the drop down list (if this option is not selected, a Standard Transfer will occur).
- Click "Transfer Funds"
- Click "Confirm Transfer" when the confirmation screen is displayed to you.
- You will receive a Transfer Confirmation number after your transfer is confirmed.
- The additional payment will immediately be applied to your loan.
What does it look like?
Frequently Asked Questions
When should I use the Standard funds transfer feature?
Use the Standard funds transfer feature to transfer funds between share accounts, and to make Scheduled Loan Payments.
When should I use the Over Payment funds transfer feature?
Use the Over Payment feature AFTER you satisfy your current monthly payment to pay additional funds directly toward the Principal of your loan.
Can I use the Over Payment feature any time of the month?
Yes, BUT you must be sure your monthly payment is not currently due or is already satisfied prior to making an Over Payment transfer.
If your loan is normally paid using the auto-sweep feature, you must be sure that your monthly payment has been made before you can apply a principal reduction.
What will happen if I try to use the Over Payment feature before I make my monthly payment?
You will receive an error message. The transfer will not be processed without satisfying your regular monthly payment first.
How do I know if my monthly payment is due?
The account summary screen will display the amount and due date for each loan or ESL Visa Credit Card.
What loans can I pay using the Standard Funds Transfer Feature?
You can pay the regular monthly payment on ALL ESL loans using the Standard Funds Transfer feature with the following exceptions:
- Wegmans Federal Credit Union Visa Credit Cards
- Wegmans Federal Credit Union Mortgages
- ESL Student Loans
Why can't I pay my WFCU Visa or Mortgage loans using the Funds Transfer feature?
These loans do not reside on the ESL database and therefore funds transfers through Internet Banking are not possible.
Why can't I pay my ESL Student Loan using the Funds Transfer feature?
These loans do not reside on the ESL database and therefore funds transfers through Internet Banking are not possible.
Can I pay more than the amount due on my loans using the Standard Transfer feature?
You can pay more than the current amount due using the Standard Transfer feature on the following ESL Loans.
- ESL Consumer Loans (auto, boat, motorcycle, RV, personal, home improvement, home equity loan)
- ESL Visa Credit Card
- Cash Reserve
You CANNOT pay more than the current amount due on an ESL Mortgage or Home Equity Line of Credit using the Standard Transfer feature.
Do I have to make two separate transfers to my Mortgage or Home Equity Line of Credit in order to pay additional funds to the principal?
Yes, you need to make a Standard Transfer to pay the regular monthly payment. Once your regular monthly payment is satisfied you can do an Over Payment transfer to apply funds directly to the principal of your loan.
Why do I have to do two separate transfers to pay additional funds to my Mortgage or Home Equity Line of Credit?
Mortgage and Home Equity lines of credit are more complicated than standard loans. The system requires that your monthly obligation be satisfied in the exact amount due. Once that payment is satisfied, the "ledger" is closed for that month and then any further payments you make will be applied directly to the principal using the Over Payment feature.
Do I have to do two separate transfers to pay additional funds to my Consumer Loan, Cash Reserve or ESL Visa Credit Card?
No, you can use the Standard transfer feature and pay any amount OVER the minimum amount due on Consumer Loans, Cash Reserve or ESL Visa Credit Cards.
How do I pay more than the amount due on my ESL Mortgage or Home Equity Line of Credit?
By using the Over Payment feature in the Funds Transfer section as long as your regular monthly payment is not due and your account is not overdue.
If I transfer more than the current amount due to my consumer loan using the Standard Funds Transfer feature, what happens to the additional amount?
When, transferring more than the amount due to a consumer loan using the standard transfer feature, first your monthly obligation is satisfied, then any additional funds are applied directly to principal.
Can I still use the Secure Form in Internet Banking to make a principal reduction?
No, the Secure Form for Principal Reductions is no longer available. The account transfer feature is applied to your account immediately and requires no manual processing.