mortgage interest only payments
Printed From: OHbaby!
Category: General Chat
Forum Name: General Chat
Forum Description: For mums, dads, parents-to-be, grandparents, friends -- you name it! And you name the topic you want to chat about!
URL: https://www.ohbaby.co.nz/forum/forum_posts.asp?TID=35213
Printed Date: 30 April 2025 at 1:08am
Software Version: Web Wiz Forums 12.05 - http://www.webwizforums.com
Topic: mortgage interest only payments
Posted By: monikah
Subject: mortgage interest only payments
Date Posted: 12 August 2010 at 3:04pm
|
basically we live in wellington and our mortgage is $700 a week cos we got screwed by interest rates when they flew up. we desperately desperately dont want to seel our house. its our home. it is our kids home and we just cant bear it. we are getting increasingly behind in payments (due to DH losing his massive overtime) and by the end of the year we will be 5k behind and by april 6.5k. we arent eligable for a mortgage holiday until some time next year either so that isnt an option
does anyone know anything about interest only payments and how to work them out etc... DH is the only one that can speak to the bank but he cant make calls from work so im trying to at least have some info or ideas sorted before he has to find a way to speak to them about it. any advice will be great. TIA ------------- 
|
Replies:
Posted By: KazS
Date Posted: 12 August 2010 at 3:05pm
|
Is there a branch of your bank open on the weekends - i would really recomend going in and speaking to them and hashing it out
Not a nice situation to be in but best of luck! |
Posted By: GuestGuest
Date Posted: 12 August 2010 at 3:47pm
|
Hiya, I remember there was a thread about this a little while ago.
http://www.ohbaby.co.nz/Forum/forum_posts.asp?TID=34691&KW=mortgage - Here Good Luck! |
Posted By: T_Rex
Date Posted: 12 August 2010 at 4:02pm
|
Are you on a high fixed rate? Could you break the term (yes, you'll have to pay a huge break fee, but they may let you add that to the loan), and refix at a lower rate?
Interest only is unlikely to save you much if you haven't been in the house for long. You have to have paid of a sizeable chunk of the principle before that will help because initially the payment is almost all interest anyway. I hate to say it, but the truth is that if you are in a house you can't afford, eventually you'll be forced to sell it. It really is better to sell it sooner, while you still have some flexibility, than wait until it's forced. Can you downgrade to a cheaper house - whether it be further out or smaller or something? Absolutely have a good go at coming up with a solution first, but if there isn't a real solution, think about selling. I know it's your home, but really it's just a house. The parts that make it your home (the people in it, your things, the memories etc), you'll take them with you to a new house. I hope there is a good solution for ya  ------------- http://lilypie.com">  http://lilypie.com">
|
Posted By: monikah
Date Posted: 12 August 2010 at 4:09pm
|
to be honest DH can make about 40-50k more if we move to sydney with our existing flatmates. they move end of the month and are gonna get set up for us to come over. we just need to catch up for a couple of months and then once we get to aus we are totally fine so we just need to battle through for now. we'll rent our house out here and though it doesnt make enough money for our payments the added wages over there make it fine if that makes sense -------------
|
Posted By: clover
Date Posted: 12 August 2010 at 4:11pm
|
How long have you had your mortgage for? Interest only really only works if you've had your mortgage for quite some time, otherwise your repayments are basically all interest with a little principle and it doesn't make much difference.
Kiwilaurie isn't on here much anymore but I remember her saying on another thread that she was a teamleader in the mortgage dept for one of the high street banks. What a terribly stressful situation for you I second the suggestion of going in to see the bank rather than ringing them.------------- http://lilypie.com"> 
|
Posted By: Buttersmum
Date Posted: 12 August 2010 at 5:02pm
|
we are currently doing interest only. Our mortgage accounts (we have 3 at seperate rates and terms) are on our internet banking and you can see the payments go out. It says if they are interest payments.........we added that up and thats what we pay now. Was real easy to do........rung westpac and talked to the loan person and was able to do it over the phone.................saved us all of $270 a fortnight so not alot but enough for me not to panic. Luckily we are up for a review of our mortgage in Nov so we are going to chuck it onto floating if the rate stays lower............we are currently on about 9 per cent fixed so hoping that will help us too. Stoopid mortgages...................I have to go back to work earlier cause of it too. My DH is underpaid in his job too and it sux ------------- http://lilypie.com"> 
 my little blobby April 09 "gone but will never be forgotten xx"
|
Posted By: Kellz
Date Posted: 12 August 2010 at 7:51pm
|
The pricipal payment part of our long is only $330 a month, so I doubt it would save u much by only paying the interest anyway.
I enquired about a morgage holiday last week through our broker- he said a lot of banks are not even allowing mortgage holidays at the moment, and the ones that are will only give them for max 3 months, and you will still be expected to pay the interest but the holiday will be off the principal payments only. |
Posted By: monikah
Date Posted: 12 August 2010 at 7:57pm
|
we can get 12 weeks of totally but not til boxing day and by then it is very nearly too late. we've made the decision to borrow off friends and join our flatties in oz. im feeling way better now we have a plan. we can easy pay anything we borrow once his wages start and we have a car that will sell for 10k if we need to as well in case we cant pay the money back we borrow. feeling waaay better now :) -------------
|
Posted By: JD
Date Posted: 12 August 2010 at 8:53pm
|
Sounds like you have made up your mind....but, if you are still looking for options, I strongly recommend NZ Home loans. We have just switched our mortgage and they have reduced the time of our mortage by heaps. We have even put our $11000 credit card on it and it still works much better than what we had.
They have a really good plan so you have flexibility to have family holidays, upgrade your car etc etc Good luck ------------- http://lilypie.com"> 
|
Posted By: monikah
Date Posted: 12 August 2010 at 9:06pm
|
would we be able to transfer to them even though we are so far behind on our mortgage? i would assume that noone else would take us on as its quite clear we cant pay our mortgage? -------------
|
Posted By: KazS
Date Posted: 13 August 2010 at 9:15am
|
Can i still recomend going in and talking with your bank face to face
We went in for a different reason but they gave us some many options we didnt even think were possible! If you show a willingness to sort it they totally work with you! Unemployment has risen again in Aussie so please dont place all your hopes on him being able to find an awesome job - it isnt as easy as it once was! |
Posted By: kiwi2
Date Posted: 13 August 2010 at 9:55am
|
Hey there
We were caught on a fixed term of 9% which expires in nov this year. I was told by someone at the bank (westpac) I can reserve the interest rate that is current 3 months before so we will be reserving our interest rate in the next week or so. It won't come into effect until november but at least we won't have to worry about them shooting up between now and then. They have risen a bit in the last few months. The difference in monthly payments will be about $650. Nothing to be sneezed at. The reason I thought about posting this is that I was worried we would finally get to our fixed term end and it would be high again. Just our luck so to speak. In the states we fixed for 30 years on 6.5%. Wish they had that system here. lol. |
Posted By: Bizzy
Date Posted: 13 August 2010 at 10:08am
|
if you contact the bank they may have a mobile mortgage manager that will come to you in your convenience. thats what my husband and i did. ------------- http://www.myfitnesspal.com/weight-loss-ticker"> 
|
Posted By: jazzy
Date Posted: 13 August 2010 at 10:30am
|
when your flatmates go how much a week will not be paid on your mortgage? ...$700 a week is a lot to pay.
I know you don't want to but maybe selling your house & clearing your debt while it is your choice would be the best option. If your DH can get that job & get $40-50k more then you can save for a house there or here. If you rent it you will need to ger more than you pay as to cover rates, problems that need fixing, & if you use an agency. Unless your house is in an area & up to a extremely high standard you may not get the professional people with that kind of money to spend in rent & have to opt for a group of people who may not treat it with the same kind or respect. I would suggest talking to a professional & get all options. Also if you are going to pin "saving" the house on a job in Oz that your DH has not done it may not work out & you will be stuck with a mortgage, rent, & no job or a lesser paying one....therefore it is important to know all your options & what can happen. |
Posted By: monikah
Date Posted: 13 August 2010 at 3:28pm
|
our flatties only pay $150 a week which includes all expenses except food so we wont really lose too much with them leaving.
we will lose money on our house cos we havent really paid anything off our principal and the market is worse now than when we bought we wont go to aussie unless DH has a job first so we wont get caught out by that. the house is very much an emotional thing too. we got it for a good price and its where we have had our kids and watched the oldest learn to walk etc... its too hard for us to say goodbye especially if we are going to lose money in the process. the only real debt we have is that house and about 4k on the credit card and a small car loan so we arent exactly drowing in debt which is great. we have budgeted that the rent from our house will no where near cover mortgage let alone rates and insurance but we can still live on that quite easy seeing as we are getting a shared house over there our rent will be cheaper (flatties are already sussing that out and have looked at how much we are paying etc) our mortgage manager is an absolute idiot (example he did all the paperwork for our interest rate re-fix so we re-did the budget and bought a much needed new car then got an email from him saying oops sorry it doesnt re-fix till this date next year) but we are gonna bite the bullet and see him and if he is still hopeless we'll ask for a new one. i definitly think it is a good idea to get all our options sorted here even if we do still decide to do an OE anyway. the less expenses the better. also if things backfire over there we can take a mortgage holiday early next year which can quite easily give us the funds to come back and find better jobs etc -------------
|
Posted By: jazzy
Date Posted: 13 August 2010 at 3:48pm
|
It sounds like you won't lose that much when your flatmates leave.
I would see what the banks got to say & how they can help...worst case I suppose get a loan & include the other debts in that. But I am sure the bank will come up with an option that suits you..good luck 
|
Posted By: monikah
Date Posted: 13 August 2010 at 4:08pm
|
have spoken to the bank now and they have told us our only option is to break and re-fix but they wont loan us amount we need. they also wont give us a loan because of DH losing his overtime. lol. we are now on the pray route. lmao -------------
|
Posted By: jazzy
Date Posted: 13 August 2010 at 4:10pm
|
bugger...how much do they charge to break it?
|
Posted By: monikah
Date Posted: 13 August 2010 at 4:15pm
|
its about 8k now and extends our mortgage back out to 30 years. we can re-fix in feb so not worth it. when we got our mortgage they were doing 5% deposit but now its 20% we cant borrow even close to what we need. -------------
|
Posted By: jazzy
Date Posted: 13 August 2010 at 4:29pm
| not worth changing yet then..Did they say anything about the arrears? |
Posted By: monikah
Date Posted: 13 August 2010 at 5:49pm
|
nope. we get behind every month and then catch up cos thats how often DH gets paid but each month we are getting a little further behind and its not til next month wehn his overtime goes that we end up in real trouble so they probably assume we are gonna ring up this month with enough money to put a bulk payment through as we normally do. -------------
|
Posted By: jazzy
Date Posted: 14 August 2010 at 11:15am
|
that sucks...hope things work out well....anyway you can get another flat mate in till you move...or rent it out & move in with a relative?
|
Posted By: kebakat
Date Posted: 14 August 2010 at 12:26pm
| I've been thinking about this and what we would do, in all honesty despite the emotional attachment we would sell because it sounds like your digging yourselves a bit of a financial hole thats gonna be hard to get out of. Without having to pay that hideous mortgage you can save loads of money (but you would have to make sure that you do rather than spend) and then when you have a really decent deposit you can buy again and be in a better situation where you aren't beubg a slave to the mortgage. |
Posted By: AandCsmum
Date Posted: 14 August 2010 at 12:42pm
|
I would ditch your current mortgage manager and go to a new one, put the ball in their court and see what they come up with.
Apparently Mike Pero people are good. ------------- Kel http://lilypie.com"> 
A = 01.02.04 & C = 16.01.09 & G = 30.03.12 |
Posted By: SophieD
Date Posted: 14 August 2010 at 2:04pm
|
To be honest, I would sell the house. Houses in Wellington are still selling at resonably good prices (we just sold 2-3 months ago) and if you are proactive now and get onto selling you will be able to wait for a good offer. If you are forced to sell by the bank, you will have to accept any offer that covers your mortgage.
If you are seriously thinking of going to Oz, I would sell and rent while we figured it all out. You could clear any other debt and save money for the move. Overall, having been in a situation where money (or lack of it!) caused soooo much stress and fighting and depression, I wouldn't go there again. Its not worth it! There will be amazing houses that you fall in love with again! Good luck with what ever you decide, its never a nice place to be! ------------- http://lilypie.com">  http://lilypie.com">
|
Posted By: kiwigal
Date Posted: 14 August 2010 at 10:32pm
|
I agree you don't want to get further and further behind as they can turn around and can take the house off you. Going OE you need a good amount of money behind just in case it doesn't work out . |
kebakat wrote:Posted By: MrsMc
Date Posted: 15 August 2010 at 1:40pm
|
sounds like a difficult sitiuation, hope you get it all worked out!
|