Why am I paying only interest on my mortgage?

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Hi- I am in a VHDA loan, 300k, Conventional without PMI, 30 year 6.375%

For the past 3 years I have paid off around 20k a year…but the principal still is 300k. I am only paying the interest.

Why am I paying only interest? When will the principal payments kick in? Do I need to pay more than my monthly payment to chip into the principal? It seems like I am paying all interest first? Does that mean I won’t start paying off my house til year 10 or 15?

And If I am not paying off the principal, I always owe more than what my house is worth! That means I cannot refinance or sell, right?? Suggestions or info is very helpful.

3 Comments
  1. Reply
    rtfm
    January 26, 2011 at 9:47 am

    This doesn’t sound right. Talk to your lender and ask them to explain what’s going on.

  2. Reply
    Robert G
    January 26, 2011 at 9:48 am

    I send a check to my mortgage company for 2300 every month ( the mortgage amount due is actually 2200, but i pay 100 extra) and it only takes about $ 350 a month of principle away…

    If i paid the minimum amount, I would have sent them checks total 79K but paid off only 9k of principle in the first three years…

    My loan was for 280000 at 4.95% with 6800 of taxes and PMI

  3. Reply
    loanmasterone
    January 26, 2011 at 10:24 am

    This is normal on a 30 year mortgage loan. Your first 5-10 years of the mortgage is primarily paid toward the interest payment and not the principal amount.

    You can easily find out what your amortization is by calling you mortgage company asking them to provide you with your amortization schedule. This schedule will tell you month by month as to what is going toward principal and what is going toward interest.

    I would not be concerned with this after 3 years. In order for you to gain enough equity for a refinance or to sell you must be in your 5th year or better. With the real estate market of today the house might nor appreciate in value as rapidly as in past years.

    I hope this has been of some benefit to you, good luck.

    “FIGHT ON”

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