Is this right? (Mortgage)?

Question

Ok......I bought my house August 2001, 49,999.00 I put down 5000.00 to cover tax title and all that jazz So that left it saying I owed 45,000.00 around there I think anyhow, 20 year ballon after 5 years 7.75% interest it stated I owed like $39,779.65 after the 5 years is that right or is my bank s****ing me?

good answer thanks

what terms, they are stated 7.75% fixed 5 year ballon payment 20 year, i was just curious if the bank is scimming off my payments.

Answer 1

You screwed yourself. You should not have left the closing table until you understood the terms of your mortgage.

Answer 2

There are on line mortgage calculators. The hidden compounding interest might be what u don't see. Did you figure in insurance costs too? sometimes that's in with the loan. You can refinance it down. There are several options at your disposal. Wish I could get a mortgage that low in my area. Now that the housing market stinks all the Realtors are jacking up the houses asking price knowing they have to come down to sell them. It should be illegal. Some of the ones I look at somehow jumped up 100,000 in value when it went on the market! Hope you can find sense in all this madness. Good luck to you. If you can put the finance worries away until after the holiday so you can swallow your food.

Answer 3

**UPDATE: yup! I looked it up in the calculator. It's absolutely correct. Whoever gave me a thumbs down....I do this for a living you know, and I do quite well.....I JUST MIGHT know what I'm talking about. Anyway, if you can find the original package of documents you signed, depending what the laws are where you live, they should have given you an amortization schedule. This will draw out how much of the principle is paid at each payment. Have a look at it and see if it matches where you are right now in your payments.

Keep in mind that for the first half of your 20 years, you will be paying mostly interest, the last 10 years you will be paying mostly principle. So yes, for now, you get screwed for interest, but that's how it works.

Answer 4

It is right. You signed for a "balloon mortgage." After 5 years the outstanding balance becomes due & payable. The lender wants you to refinance the loan at CURRENT interest rates.

Answer 5

It is amazing now that u think u hv to pay a lot. The interest burden in the initial years is large but later u will not feel the pinch too much

Answer 6

how old are you