Morgage Question

[RCT]

we have only owned our house for a little over a year...and the Loan holders sent us a Payoff statement, :lol: Like I have XXX amount of dollars just laying around to pay off my loan...:biglaugh: is this common? just wondering...sound like I am stupid...I'm not...just haven't got a clue...:rolleyes:

[AnnW]

Is it a mortgage with a balloon?
We usually get an end of the year statement from our mortgage company that shows how much we have paid, what's in escrow ect.

[angie r]

We always get a statement too. Be sure to take your mortgage interest as a deduction on your income taxes!

[kathleen]

I worked as a mortgage loan processor for several years. Even though I have been out of that business for 5+ years, here is some info (though these are just examples, it is not every type of loan that is out there): There are several types of mortgage loans -- fixed rated loans that are usually 15 or 30 years; adjustable rate loans where the rate changes every 1, 3, 5, or 7 years, but the loan term is 15 or 30 years; and balloon payment loans, where the loan payments are figured on a 15 or 30 year term, a regular monthly payment is made for a certain term (but that is usually 5 or 7 years, I have never seen a one-year balloon payment), then the remaining balance is due in full. (If people get this type of loan, it is sometimes because they do not expect to be in the house longer than the 5 or 7 years, or they refinance the loan before the end of the term.)

I would check the copies of paperwork you received from the bank when you closed the loan, but most likely this is just a yearly roll-up statement.