Quote:
Originally Posted by Special K
How did you calculate lump sum to be 6 figure? Do you mean lump sum for the full 5(?) year term?
Interest rates went up quickly in the last 6 months. The shortfall on principal shouldn’t be anywhere near $100k+ over 6 months, unless your monthly payments are really high like $20k+ monthly.
If it’s based on a full 5 years variable at trigger rate or higher, then yes $100k-300k easily over 5 years to match principal draw down and amortization.
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Basically what supafamous said. I was paying over half into principle before the rate hikes. The interest has gone up so much that I'm down to something like 1/5 of my payment into principle now and my 30 year term became 55 year before I upped my payments to pull it back.