The Motley Fool Discussion Boards

Previous Page

Personal Finances / Buying or Selling a Home

URL:  http://boards.fool.com/fixed-heloc-principalinterest-varies-30390954.aspx

Subject:  Fixed HELOC principal/interest varies?? Date:  11/19/2012  9:59 PM
Author:  HELJinCT Number:  124431 of 125391
I have noticed recently that my fixed rate HELOC seems to have varying amounts of principal applied. This was a secondary mortgage (fixed rate HELOC) on my original home loan from years ago using an 80/10 split to avoid PMI.

The monthly amount is $480.22

2 months ago, at the bottom of the statement it said:
Payment applied as follows: Principal $237.24, Interest $242.98

Then this month it says:
Payment applied as follows: Principal $127.60, Interest $352.62

That low amount of principal caught my eye as I was under the impression that this fixed rate loan should have a steadily increasing amount of principal (and decreasing interest).

What gives?
Copyright 1996-2013 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us