in payments for the last 3 years. Only 1724.00 of it has went to principal. The interest rate started at 7.00% and 3 months ago increased to 9.75%. The bank sent me a loan transaction history but I cannot tell what it means with all the code numbers. My question is does it seem like I am being ripped off or doesonly 1724 of 5760 goinf to principal seem right?thanks
2007-03-04 04:14:09 · 6 answers · asked by 1st-time-mommy 1 in Business & Finance ➔ Personal Finance
The loan is 157.98 per month but I pay 160.00 per month. The interest rate is jumping because it is adjustable. I havent been late. They always seem to mess up when I submit my payments. One year of the loan I paid all 12 months at once. (1920.00)
2007-03-04 04:41:00 · update #1
That sounds about right for the rates you specified, but 9.75% is highway robbery. Shop around and see if you can get a cheaper rate (or, if you can afford it, repay the principal faster).
2007-03-04 04:17:26 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Go to bankrate.com, select "mortgage payment" (or something similar) under "calculators," and plug in the numbers. I tried, but I didn't have enough information (I need either the total monthly payment or the term of the loan). (for other websites, google "amortization")
If you have a very long term loan, yes, this can happen. When you make a payment, they pay off the interest first. Then what's left over goes to the principal. If your payments are low, not much will be left over to pay down the principal.
When you buy a house with a 30-year loan, you wind up paying 2-1/2 to 3 times the purchase price, due to interest.
The bank should have given you a paper that tells you what the total amount of the loan will be. I think it's required by the Truth in Lending act.
Why is the interest rate jumping so high? Were you late on a payment?
Try refinancing the loan with a 0% credit card. They usually charge 3% up front, but it's worth it. And you have to be stringent about making evey payment on time. I suggest automatic payments. And DO NOT use the card for anything else!!!!! Among other things, it will raise your monthly payment, which may cause you to be late if you rely on your automatic payment to cover it.
Make sure there is no prepayment penalty before you refinance it!
Get out your original paperwork and examine it carefully.
Your bank loan officer should be able to explain the transaction history.
Off topic: I see your points are low and you ask a lot of questions. Are you selecting a best answer for all your questions? You get three points back for selecting a best answer.
2007-03-04 12:33:44 · answer #2 · answered by Maryfrances 5 · 0⤊ 1⤋
7 percent of 17,500 is 1,225 which is the interest you would have paid the first year if you paid none of the principle. You said you paid 5760 over 3 years, which implies your total payments the first year were 1,960, which implies you paid down only 695 of the principle...because you paid some of the principle, the numbers get a little better in each of the following two years.... but for a quick estimate...I would expect you to have paid off at least 3 times 695 or 2085.... now...if you have left something out... like part of your payments went to private mortgage insurance or property taxes...that would explain the few hundred dollar discrepancy...
2007-03-04 12:34:18 · answer #3 · answered by cato___ 7 · 1⤊ 1⤋
Look at the big picture, if you multiply your monthly payment times the number of months, then how does this compare with the amount of money borrowed in the first place.
2007-03-04 12:25:39 · answer #4 · answered by jimmymae2000 7 · 0⤊ 0⤋
it's not right but legal. It took me almost 10 yrs. to pay off 600.00 at 15.oo a month. If u can double or triple your monthly payments to get it paid off quicker.
2007-03-04 12:24:17 · answer #5 · answered by luminous 7 · 0⤊ 0⤋
you got played like most women do in these situations, sorry...
2007-03-04 12:22:08 · answer #6 · answered by Tacyella 4 · 0⤊ 0⤋