Posted on: 13th Mar, 2009 12:30 pm
My wife and I have a 2nd mortgage on are home that we have been paying for around 8 years. The loan was for around 10,000.00 thats with interest for 5 years. The payments was around 280.00 a month. After about 2 or 3 years we hit rock bottom and we called them and they set us up just to pay interest of 125.00 a month. Every once in a while we way 250.00 a month. Our loan is still at 6,500.00. We calculated that we have paid them over 17,000.00 since time of loan. My question is there a law or something that says once you paid so much, that the loan with interest has to been paid in full over a certain amount of time? Remember the loan was only for 5 years.
Hi easyboy,
Did the loan company officially change the loan into a interest only? or did they just verbally agree to adjust your loan and asked you to pay only the interest? As you have been paying only the interest for the last 2-3 years in the form of $125 a month instead of $280, the unpaid balance keeps on adding on your loan amount. I think you should talk to them and ask them to re-schedule/re-structure your mortgage plan and change it into an interest only plan. You should also check with them how they are calculating the balance loan amount with your interest only monthly payments.
Did the loan company officially change the loan into a interest only? or did they just verbally agree to adjust your loan and asked you to pay only the interest? As you have been paying only the interest for the last 2-3 years in the form of $125 a month instead of $280, the unpaid balance keeps on adding on your loan amount. I think you should talk to them and ask them to re-schedule/re-structure your mortgage plan and change it into an interest only plan. You should also check with them how they are calculating the balance loan amount with your interest only monthly payments.