1

I just received a letter from my bank , stating that my yearly rollover interest rate would not be changing. As of now we pay $353.72 on the principal and 61.63 on the interest. This loan is almost 18 years old and we owe $25,800.

The letter states that our interest rate will remain at 5%, but the payment on the principal will change to 306.02 and the interest will go up to $109.60. As I said the interest rate did not change.

This makes no sense to me and when I contacted the bank, they were not able to give me a good reason why this is happening. They want me to send a copy of the letter I received and give the some time to look at our loan papers. Has anyone ever heard of this?

  • 2
    Can you give the whole picture? What change is there in your total payment? Are they escrowing taxes for you? Are you still paying for PMI? – JohnFx Dec 20 '14 at 1:10
  • Anyone who knows: What is a "yearly rollover interest rate"? – keshlam Dec 20 '14 at 2:18
2

$61.63 * 12 = $739.56 or 2.9% of $25,800. Something is wrong, or was wrong and the bank found their error. 5% of $26,000 is $1300 or about $108/mo which sounds closer to what the interest should be. If you are 18 years into this loan, I hope you know whether it's fixed or variable and what the rate is each year.

But, no one here can help you without the missing details.

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.