Shady mortgage companies

[Erin Wilks]

Hi everyone,

I've had my mortgage recently taken over by another company, I've managed to log on to their online portal to see they are charging me three times the interest than the principal and had a quick look on Better business bureau to see they have 500 or so complaints and one star reviews. This being my first rodeo, I've reached out to see what can be done to change this payment plan. My interest rate is at 4.875%, but they have me paying the absolute bare minimum in principal which isn't ideal really. I initially paid a 25% deposit for the property and my goals are not to just be paying interest for the rest of eternity. Would it be prudent to try and refinance with another company if I can't come to some other terms?

I've only owned the property for a year, I have a feeling I am in a bit of a sticky situation with this company and I'm not sure if anyone else has found themselves in the same situation??? 

[Chris Seveney]

@Erin Wilks

This is common for a new loan and you should have an amortization schedule

For example a $300,000 loan at that rate would have approx $370 in principal and $1200 in interest payments the first year.

This has nothing to do with your mortgage company being shady. You should also have the amortization schedule as part of your closing docs

Also note your payments will go up every year for taxes and insurance which also have nothing to do with the loan itself