The mortgage company calculated our biweekly payments based on monthly payments…?
My wife owned our home prior to our marriage. Just recently we have been talking about moving to a larger home so I started looking at our financial status. I started with trying to figure out the amount left on the current mortgage but ran into a little problem. It appears that the mortgage company created our mortgage by taking a 25 year amortization based on monthly payments, then halving the monthly payments to make the biweekly payments we have been paying. I know that it thus creates an incorrect calculation for a payment monthly of 840 is equal to 10080 and the actual payment of 420 biweekly equals 10920 a year! The payments calculated do not fit the information laid out in the loan papers.
My questions, keeping in mind that we are in Ontario, Canada is:
1 – What recourse do we have against the lender for making such an error?
2 – What options legally do we have against the lender for making calculation errors like this on official documents.