Paydowns

Q: My wife just passed away and I'd like to use most of the insurance money to pay my loan down. I heard that the bank may reamortize the loan. What does this mean and how will it affect my loan? I refinance two years ago at 5.125% for 15 years at $240,000. I'd like to put down at least $125,000 to get it to the point I can make the payments. Can you please explain what may be the best way to talk to my bank about this process? I appreciate the assistance.
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Q: I have been paying my mortgage down rather quickly, putting my extra savings into principal payments. Great, so far, but I have also been making my monthly payment early. For instance, my payment for July was due July 1, but I made the payment on June 3, believing that the interest I'm paying would be on a declining daily balance. Now I've found out from my lender that I have not been getting any break at all for the early payment. Does this sound right to you? Is it legal to charge me interest on money they have already received?
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Q: I have been paying my mortgage down rather quickly, putting my extra savings into principal payments. Great, so far, but I have also been making my monthly payment early. For instance, my payment for July was due July 1, but I made the payment on June 3, believing that the interest I'm paying would be on a declining daily balance. Now I've found out from my lender that I have not been getting any break at all for the early payment. Does this sound right to you? Is it legal to charge me interest on money they have already received?”
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