Renewed our mortgage, is this fair? (Full Version)

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flowerz -> Renewed our mortgage, is this fair? (7/5/2008 4:30:42 PM)

We renewed our mortgage a couple of months ago and we feel like our credit union (bank) didn't treat us fairly.

We borrowed extra money to pay off all our other debt and to replace our roof, and other repairs on our home. Our mortgage would have been at the 20 yr mark, but they set it back to 30yrs again, because they said our income wasn't high enough. Then they forced us to set aside a large amount of the extra we loaned and put $200.00 a month into our account to help us make our mortgage payments. Our payments hardly went higher at all, with the extra 10 years added on, we weren't having trouble making the payments before. So now we are left with barely enough to even do our roof. On top of that, we are paying over 6% interest.



Harvie -> RE: Renewed our mortgage, is this fair? (7/5/2008 6:16:14 PM)

If you didn't think the terms were "fair" ... why did you agree to the refinance?



zoebob -> RE: Renewed our mortgage, is this fair? (7/5/2008 6:20:25 PM)

so they loaned you money but won't let you spend it?



Miss Giggles -> RE: Renewed our mortgage, is this fair? (7/5/2008 7:23:27 PM)

I don't understand why they aren't letting you spend 200.00/month. But there is a "credit crunch" right now so be glad that they approved your refinance.People with bad credit cannot get a loan. And many people are upside down on their house so they can't sell or get a second mortgage.



relady -> RE: Renewed our mortgage, is this fair? (7/6/2008 12:17:02 AM)

Yeah, I'm not sure I understand....they won't let you use the extra money they loaned you?



creationtalk -> RE: Renewed our mortgage, is this fair? (7/6/2008 8:53:08 AM)

What do your loan papers say with regards to the refinance? Is there something in the paperwork you signed giving them authorization to hold back funds? Are they paying you interest on the money they withheld?

If you want to have a 20 year mortgage and they gave you a 30 year mortgage, then simply calculate what you would need to pay to pay it off in 20 years and pay the required amount plus extra to principle (unless there is a clause in your mortgage about early repayment).

FYI: at 6% interest (presuming fixed) you will need to pay $71.64/mo per $10,000 borrowed.

If you feel there is nothing in your loan paperwork to justify the holding back of funds and you are unable to get a satisfactory response from your credit union, then you can contact the banking regulatory commission in your state and lodge a complaint.



flowerz -> RE: Renewed our mortgage, is this fair? (7/6/2008 6:53:45 PM)

I don't think it occurred to my husband to shop around when it came to renewing our mortgage. We agreed to the terms because they made it sound like that is the only way they would allow us to borrow extra money.
So they loaned us some money, let us have enough to pay off our debts, which they actually payed off for us, and left us some left over, but held back a large sum.



GregandJenny -> RE: Renewed our mortgage, is this fair? (7/6/2008 8:46:20 PM)

what is a renewed mortgage?



ta_mosquito -> RE: Renewed our mortgage, is this fair? (7/6/2008 8:56:35 PM)

quote:

what is a renewed mortgage?

Here in Canada (and someone can correct the details if I get them wrong), a mortgage is only available for 1-5 years. After that time, you renegotiate the rate, variable vs. fixed, etc. The mortgage is still amortized for 20-30 years or however long, but the term of the contract is only 1-5 years. So you have to renew the mortgage after that time.



GroupW -> RE: Renewed our mortgage, is this fair? (7/7/2008 1:19:22 PM)

quote:

ORIGINAL: ta_mosquito

quote:

what is a renewed mortgage?

Here in Canada (and someone can correct the details if I get them wrong), a mortgage is only available for 1-5 years. After that time, you renegotiate the rate, variable vs. fixed, etc. The mortgage is still amortized for 20-30 years or however long, but the term of the contract is only 1-5 years. So you have to renew the mortgage after that time.


LOL - I'm slightly familiar with CAN mortgages and STILL totally missed the fact the OP was Canadian! Now it makes more sense. I was about to ask a bunch of U.S. mortgage related questions.

Note to self: Gotta remember to look at the location of the OP before spouting off opinions.



Miss Giggles -> RE: Renewed our mortgage, is this fair? (7/7/2008 1:26:16 PM)

I missed it too. I read it as refinance.



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