With Cosi loans if payments are made every 2 weeks will neg

Hi,

If you make bi-weekly payments then the total term of the loan will get reduced and depending on the total number of years the loan is for the reduction in the years will be, you have mentioned 24 years but it will vary as per the total years the loan is for. - Thanks. Foldvary

If you select the minimum payment option, then it sometimes will not cover the total of principal and interest that becomes due. In that case there might be negative amortization for the loan.

Anne

Hi Guest,

It does not mean that a bi-monthly payment (payment every two weeks) can always lead to negative amortization. It will only happen if the monthly payment does not include the interest that you are supposed to pay each month. The amount of interest unpaid is added to the principal balance each month. However, if the total interest covered in the payments made in every 2 weeks does not add up to the amount of interest due in each month, then only your loan will be negatively amortized.

If you can give us the entire details on your loan, then we will be able to provide you with a calculation of the payment schedule.

Thanks,

Caron.

I recently got a COSI loan from a company called First Rate Mortgage. They were great at selling me the loan, but once the loan was closed and now that I have questions no ones there to answer them. Do you recommend just paying the minimum or not? I'm fearful that the deferred interest is going to hurt me. Please help!

Hi christopher,

Your query has been answered at http://www.mortgagefit.com/know-how/about5789.html . Just go through it and if you have doubt, please let us know.

Thanks,

Sara