I had a garage built and then lost my job so I got another mortgage including the garage. Well I was not aware it was an interest only mortgage until this year when I found out the mortgage company didn't pay my home owners insurance. I called the mortgage company to ask why they are not paying my home owners insurance they say we are not responsible for it! I asked why and this is when they say because you have an "interest only mortgage" for the next 10 years! They won't give me any help, so I am seeking help as to how to get out of this ripe off mortgage. I did have my house for sell however I got a job so I can stay here, however the princple is getting bigger and bigger and my payments are going for interest only. Any suggestions please.
2006-08-31 05:24:40 · 6 answers · asked by jmor827@sbcglobal.net 1 in Business & Finance ➔ Personal Finance
you have 2 options: refinance and again pay closing costs or pay more, than your mortgage payment like with credit card. if now you have good interest rate i will pay more on my mortgage payment. for about 3-4 first years of your 30 yrs mortgage you pay off your principal in about 1% per year, so it is really easy to calculate how much more you need to pay. there is no interest mortgage that you can't pay more on your principal- some of them have restriction no more than 20% of principal balance per year, you can pay more every month or you can apply bigger payment anytime you want, there is no restriction for you to do this.
2006-08-31 06:01:19 · answer #1 · answered by bianca 4 · 0⤊ 0⤋
All answers that you get to this question will be general do to every state being different. The one questions that I haveis how long ago did you refinance? If it was within the year you might have to pay some capital gains or fees to refinance so soon. If were longer than an year just go refinance again. If you weren't late on any payments you should be fine. Do you plan on staying in the home for 5-10 years, then you should refinance, if you only plan on being in the home a couple of years, then you should think about staying in the interest only loan. The majority of your payment no matter what loan it is, is interest anyway. i would really look into it. Go to another bank and see what they have to say, no, keep in mind that they want you business, so keep a straight head and don't jump into anything. Just like last time, they will either omit information or mislead you to switch banks.
2006-08-31 05:36:01 · answer #2 · answered by jdecorse25 5 · 1⤊ 0⤋
Man please.
How the hell did you get through closing on a mortgage and NOT REALIZE you had interest only mortgage.
Did you ever see a "escrow schedule" when you closed on the interest only mortgage? Nope.
You have to refinance for a fixed mortgage but you still are going to have to come up with funds for this year's homeowner's insurance.
And when you close on your refinance -- do yourself a FAVOR -- read the sheets you are signing.
Geez.
2006-08-31 05:35:26 · answer #3 · answered by DaMan 5 · 2⤊ 0⤋
i feel sorry about the situation. u know its best to pay slightly more to a big bank or company than to get ripped of by an unknown bank.
2006-08-31 23:10:02 · answer #4 · answered by bidia 3 · 0⤊ 0⤋
interest or no Interest you can inpound them..at least in California
2006-08-31 05:28:11 · answer #5 · answered by Anonymous · 0⤊ 0⤋
www.chase.com
2006-08-31 05:55:38 · answer #6 · answered by Anonymous · 0⤊ 1⤋