Just to add to Al's reply.
If you can get your system changed ( I suspect you can ) THEN
1. Make sure all types of notes have this same wording - Consumer / Commercial RE / Commercial non-RE / Residential / HELOCS / ETC.
2. Don't miss the fact that the note wording indicates,
first to accrued Int
then to unpaid other charges (late fees, annual fees, etc...) and lastly to principal balance
I am thinking too hard about this I am sure, but I need someone . . . The note says that payments are applied first to accrued and unpaid interest and other charges, and then to payment of the unpaid principal balance.