Help with mortgage terms from bank?
I would appreciate any help. I have a jumbo, “interest only” mortgage (500k+) on a new construction home. I was not able to get a conventional loan due to my inability to sell an existing house (the funds would have been used for the down payment for the conventional loan). This whole process started in 2006 (June). Construction was halted during Hurricane Katrina, and the home was eventually completed in May of 2006. Since that time, I have been paying on an interest only loan(approximately 6%) or $ 3,000+ dollars per month, with still no conventional loan in sight. My wife and I have paid easily over 50K on this matter, with no reduction in principal, nor being any closer to having a conventional loan. We just were notified yesterday that as of April 2009, they will no longer be able to offer us the interest only loan, and we will have to find someone to give us a conventional loan. We feel used!!! Any suggestions on what we should do next? We now have to start over.