Why my monthly interest doesn't go down when I pay extra dollars to my mortgage?

Question

We have $75,000 loan with a 15-yr fixed rate at 6.84% starting from Nov. 2007. Our total monthly payment is $667.43. The 1st 3 months (Nov & Dec 2007, & Jan 2008), we paid $1000 extra each month. And from Feb 2008, we pay $700 monthly which is $32.57 extra. Though our balance is going down a little bit less, my monthly interest bounces from around $300 to $500. The unbelievable thing is after we have paid $3000 extra in the 1st three months, our interest went up to more than $500 in the third month. Our request on a breakdown sent to us was even roudly rejected by our lender Charter One. Actually, the rep we talked to even hung off the phone in the middle of the converation. What shall we do next? Where shall we seek help?

Answer 1

Are you sending the payments in at the same time every month? The interest paid with each payment is that which has accrued since the last payment. If you sent the second payment in a week early and the third on time, then the second would be low and the third higher. The extra $3000 that you have sent in so far really isn't going to knock down your interest that much per month; only about $17.

Answer 2

this sounds EXTREMELY fishy.  they should have no problem giving you a break down of mortgage payments.  i would call them again and ask to speak to managers/presidents and see what happens.  

as for the interest charges, that too sounds wrong.  maybe the reason they don't want to give you a break down of mortgage payments is because they're afraid you might catch something.  i would call their corporate office, or call a competing bank and see if they'll explain it to you.  they'll be extra nice and honest with you about it because they'll try to get you to transfer the mortgage to them.  if all else fails, contact better business bureau or SEC, FINRA, or some other financial regulatory authority.  FDIC might be able to help as well.