Carrie
Asheboro,#2Consumer Suggestion
Sun, November 26, 2006
While I do not have any personal knowledge of your situation, I have a few reasons that could have resulted in the increase. The most likely reason is that you have a daily simple interest loan. What this means is that you accrue additional interest each time you pay outside of a 30 day cycle. This has nothing to do with the due date, but rather when you pay. For instance, if you are due on the 1st, but consistently pay on the 19th or every month, you are not paying additional interest. If you pay on the 1st one month, the 10th the next, the 20th the next, etc. you will add quite a bit in interest. Just an FYI, most mortgage loans do not decrease by a large sum during the first few years. If you have a 30 year, $120,000 mortgage, in most cases you will pay very little of the principal for the first 5-6 years. This time is spent paying the interest.