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Hello, I am new here & I have a question about my mortgage.
Old 07-02-2008, 07:07 PM   #1
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Hello, I am new here & I have a question about my mortgage.

So I refininaced about 1 1/2 years ago with Compass Bank. It is a 30 year fixed second mortgage with a rate of 8.9% in the amount of $100k. On the monthly bill I get from them, it shows that I have $197.01 out of $805.77 going to principle, which leaves $608.76 going to interest. So I assumed that's what it was doing. I later noticed that they put a balance on the lower left hand side & that balance was the same as the previous month. Then I looked back as far as March & it was still the same back then. My bill is due on the 10th & I usually pay it after the 10th but before the 11 day grace period is up. I do this because that is when I have the money to pay it. So when I called they said that interst is being taken from my principle every day that my payment is late. They said it equates to about $25.00 for each day that I'm late. So how could I have a 30 year FIXED loan that could potentially end up being far more than 30 years? This is aggrevating. I have lost about $2,000.00 that should have gone to my principle because I pay my bill a couple of days beyond my due date. Can anyone help me out with this one?
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Old 07-02-2008, 08:19 PM   #2
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Pay the bills on time?
Set up an automatic withdrawal?
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Old 07-02-2008, 08:21 PM   #3
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Not much to say here other than pay it on time I guess. Sounds like you have a sub prime mortgage and pay late, which is a bad combo =/

No idea of your details (i.e. what you make, what your expenses are) but can you afford this house?
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Old 07-02-2008, 08:28 PM   #4
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My ex thought it was OK to pay the house payment late because the late fee didn't kick in for ten days.

It is NOT OK.

The contract I signed said it would be there on the first of the month.
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Old 07-02-2008, 08:37 PM   #5
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What are automatic or recurring payments?

Mortgage Servicing: Making Sure Your Payments Count

http://penfed.mortgagewebcenter.com/...ria.asp?PID=22
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Old 07-02-2008, 08:46 PM   #6
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The following are only the opinions of a grouchy old LBYM guy.
1. Second mortgages are a mistake.
2. 30 year mortgages, especially second mortgages are a mistake.
3. 8.9% is a lot of interest to be paying with today's interest rates.
4. Making any payment late is a mistake.
The mistakes you are making can keep you in debt and poor for a long time.
Jeff
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Old 07-02-2008, 09:58 PM   #7
Confused about dryer sheets
 
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WOW! I appreciate your honesty. I understand these aren't the best decisions which is why I am getting out of this crap ASAP. I didn't think they could actually take what was scheduled to go to principle and realocate it to interest until after the grace period. I guess I was wrong. I have tried the auto withdrawl at TCF & that is a whole separate issue. I haven't banked there in over two years & they still send me e-mails telling me my mortgage is going to be paid at so & so time. I have tried many times to delete the e-mail notification, but it seems impossible. They can't even find me in their system, but they can e-mail me every month. Nice!! So that is why I chose not to have a bank draft my money. Yes, I can afford my house. I just started a business & I am being very cautious about when I pay myself & how much. I appreciate all of your comments & I am going to change my current morgtage situation. Thanks
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Old 07-03-2008, 08:20 AM   #8
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Reference #3 I really doubt (and hope) PENFED would touch this one.
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Old 07-03-2008, 08:28 AM   #9
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Quote:
Originally Posted by am2000 View Post
WOW! I appreciate your honesty. I understand these aren't the best decisions which is why I am getting out of this crap ASAP. I didn't think they could actually take what was scheduled to go to principle and realocate it to interest until after the grace period. I guess I was wrong. I have tried the auto withdrawl at TCF & that is a whole separate issue. I haven't banked there in over two years & they still send me e-mails telling me my mortgage is going to be paid at so & so time. I have tried many times to delete the e-mail notification, but it seems impossible. They can't even find me in their system, but they can e-mail me every month. Nice!! So that is why I chose not to have a bank draft my money. Yes, I can afford my house. I just started a business & I am being very cautious about when I pay myself & how much. I appreciate all of your comments & I am going to change my current morgtage situation. Thanks
Well, TCF is only one financial institution. Find another and do the automatic payments. It really works quite well so I would give another bank a chance.
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