Alabama HB55 allows mortgagors to make biweekly or semi-monthly mortgage payments and additional payments to the principal without penalty.
Alabama HB55 mandates that financial institutions in Alabama allow mortgagors to make biweekly or semi-monthly mortgage payments. It also permits mortgagors to make additional payments towards the mortgage principal without incurring any penalties. These additional payments are applied first to any unsatisfied escrow payments and then to the mortgage loan principal. The bill defines key terms such as "biweekly," "contractual mortgage payment," and "escrow amount.
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