It's actually my mother in laws mortgage. Idk what she did but she modified or refinanced about 6-7 years ago (bought the house in 2005). She says she bought it for 90k. But Im looking at her mortgage statement: Total principal balance: 135k.Breakdown of payments: $550 towards interest, $9 towards principal, $250 towards escrow & taxes. So does the interest go towards the balance of 135k?
Supposedly whoever helped her with the modification told her it's a fixed rate interest to have the house paid off in 30 yrs. Annual interest rate is 4.95. Idk, this is just crazy to think that anyone's paying over $500 interest vs $9 principal on a mortgage. What a rip off! So please inform me how this works. This is California (if it matters). Thanks everyone:z
Read more: Is my mortgage payment reasonable?
