I'm having a hard time with my 2nd mortgage company again...  

I don't know if some of you remember last year, but my 2nd mortgage had gotten transferred to another company and the new company tried to pull a fast one on me. My loan is an "interest only" loan, which means I don't have to pay on the actual loan part yet. But, since I want to pay it down some, I do send in extra money to apply to the principal of the loan. My original loan stated that any excess in the payment would bring down the principal, therefore reducing the amount of interest due, thus reducing my next payment. The new company decided they were going to take my excess payments and apply it to the next months interest, leaving the principal amount of the loan the same. At that rate, over this last year I would have paid the next 2 months interest and my balance would be the same.

Right now I'm in the process of paying as much of it off as I can - about half of it. When we contacted them about it, they told us that our payments would remain the same, even if we paid off almost all of it. Of course, they're going to hear from me again because if the loan is only half of what it was, the interest will only be half what it was. So, our "interest only" payments will be half what they were before.

The loan guy I'm using to refinance my original mortgage and most of this other one is totally floored by their response. He's pretty sure it's not even legal for them to do that. I'm not looking for a lawsuit, I just want this other company to honor the loan documents. It's so frustrating dealing with them, I wish we were able to totally pay them off!

Any other mortgage/loan nightmares out there?