The Manufactured Housing Forums

I purchased a MH last November and a company agreed to give me a mortgage but I felt that because I was Canadian and had money in Canada, I had to go through my hoops than necessary. Putting that all aside, I took an interest rate at 14.25% knowing that I could pay the mortgage off at any time with no penalty or refinance. I plan on refinancing but in the past 4 months I found out that because I was paying my mortgage early (ie on the 13th or 14th instead of the 15th) I forfeited my principal as a penalty for not paying on time. So I arranged to have my mortgage automatically paid on the 15th each month and I noticed in my last statement that they took the money out on the 14th and it went all to principal. In the past year I have only paid little more than $100 towards my principal and rest to interest. At 14.25%, my mortgage payment is very high. I put down 10% on a brand new place. What do I do? I feel there is something wrong here ... I am being penialized if I pay early, I get penalized if I pay late and the company is not listing me for credit references. I don't remember this being told me when I signed the agreement other than I was told I had to pay on the 15th and would that be a problem. Of course not, as long as it wasn't paid late. Can anyone help me or direct me to some agency that can help me sort this out. I am in the process of looking for land to move my home on permanently but because I am not listed for credit references, I don't have the credit. AWWWWWWH!!

Lots of things....

First...you cannot be penalized for paying off early...or paying early unless there is something in YOUR contract....read it...

I have NEVER heard anything like you mentioned...Now..If you have a long term note...$ 100 toward principle the first year makes sense...It takes a long time to lower the principle very much..

Do you have an amortization chart...If not you can make one right in your computer with Excell or Works...Most Windows based computers come with one or the other....And there will be templates in each for loan calulation charts..

The good news is that some mortgage companies will use this account as a reference even if they do not report to the credit b....they will take your check statements as proof of payment or a letter from the lender detailing your payment letter..There are 3 credit b in the US..and mortgage lenders use them all...Some lenders only report to 1 and you might not be checking that 1..

For me to help you with government sourses...you will have to answer a few questions...Where is the home...do you live in it..where did you sign the contract..who is the lender..

If you wish..I could post the amortization schedule for the first few years here...(the whole 30 years would be too long)...I would need some info from your contract..rate,,,number of months...first payment date..and most important..amount financed as shown on the contract...

Wow, it does not seem correct that you will be penalized if you made your payments early. Chek these few items to make sure, you may have been mistaken about the charges or penalties when you were making your payments early. Most contracts cleary state that your Payment is due " on or before the (first, or tenth, or whatever) so therefore yo would be ok. Also, i believe that most states, or even federal, prohibit early payoff penalties on residential mortgages, chek into that too.
When you make a payment be sure that it is the exact amount of the payment, and be sure to put acct # on check, and sure to send paymnet coupon or statement with payment, so they can apply it properly.
You may have made a payment one month, and then sent another in too early, so that payment could have been posted to your "PRINCIPAL" so therefore you didnt make another payment for a while so all along the bank might have been showing the payments coming in late, and you were charged late fees!
jacob