Confused over my mortgage rate
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cindy
Apprentice
Joined: 19 Jun 2006
Posts: 4
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 Posted: 12/30/09 - 05:12 Post subject: |
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| I don’t understand one thing. I was told that my mortgage’s interest has increased and that I’ll have to pay for more, and I knew that such thing may happen because I’ve decided to get a mortgage with variable rate. But for several months I’ve been paying the same. Should I do something, should I alarm people, because mortgage interest had truly increased, that’s for sure. How come my payments haven’t? |
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karen
Apprentice
Joined: 23 Jul 2006
Posts: 4
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| Posted: 01/29/10 - 03:49 Post subject: |
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| Probably that it because you haven’t understood well what really is variable rate mortgage. With fixed rate you have fixed interest, but also fixed time to pay it off, with variable rate, you have fixed payments, but non-fixed time to repay your mortgage, so your payments should remain the same, but you are going to repay the entire mortgage by getting some additional time. Your interest increases on account of your regular payment value. |
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