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Old 10-04-2020, 08:56 PM   #161
The Cobra
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Originally Posted by Ryan Coke View Post
If I am understanding what you are saying, I would imagine that they are just adding the additional accrued interest onto the end essentially, and with compounding it adds up.

Having said that, I would think that if you made a lump sum payment that was equivalent to the additional accrued interest, then you would save the same amount of compounded interest that is now being ended at the end.

If that makes sense.

That would be correct.


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Old 10-04-2020, 08:56 PM   #162
Harry Lime
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When the deferral was first offered, my understanding was that the accrued interest was to the end of the current term, which would be two and a half years (for me). Not being straightforward and telling me that the months would be deferred, and then I would be charged double for the missing months (the end of amortization), seems a little disingenuous.

The bank played it like they were the good guys doing a favor, when in fact this was a giant windfall.
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Old 10-04-2020, 08:58 PM   #163
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Originally Posted by Harry Lime View Post
When the deferral was first offered, my understanding was that the accrued interest was to the end of the current term, which would be two and a half years (for me). Not being straightforward and telling me that the months would be deferred, and then I would be charged double for the missing months, seems a little disingenuous.

The bank played it like they were the good guys doing a favor, when in fact this was a giant windfall.

You pay interest on the full amount outstanding.

There is no windfall for the bank.


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Old 10-04-2020, 09:01 PM   #164
Harry Lime
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Originally Posted by The Cobra View Post
You pay interest on the full amount outstanding.

There is no windfall for the bank.
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There is if I pay it all off today, but the incurred interest is for 22.5 years.
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Old 10-04-2020, 09:03 PM   #165
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There is if I pay it all off today, but the incurred interest is for 22.5 years.

The bank cannot charge interest on money you pay back.


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Old 10-04-2020, 09:08 PM   #166
Cecil Terwilliger
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Yeah it sounds like your bank is trying to be nice to people and allowing them to amortize the interest over the life of the mortgage instead of requiring them to pay it back immediately or at the end of the term.

But if you increase your payments, you can undo that and revert to your old amort schedule.

This is the bank increasing flexibility for clients, not taking advantage of them.
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