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, 2014 at 1:10

1 Answer 1


$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.

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