I Am Paying Too Much Toward Interest!

Good day,

I have concerns that my financial institution (RBC) has made too much money from the interest off my mortgage (You and me both, brother, you and me both!) and I should be able to negotiate terms in lowering my interest rate or at the very most pay principal only (not likely). You may be able to negotiate terms, but it will likely result only from being delinquency on your part. Unfair, I know, but it is the way things are right now.

I’ve lived at my residence for just over 11 years. I originally borrowed $85,000 to buy it.The home was built in 1901 and has had significant upgrades, but marketable for about $90,000.I have re-mortgaged twice, once in 2002 when the balance I believe was around $77,000 for $104,000 to consolidate debt, go back to school and another time in 2007 for the amount owed then, approx. $89,000.I still owe $87,000 on the house and over the course of 11 years I have given the bank approx. $88,530 total principal and interest. I do know that since I have re-mortgaged a couple times, I would have to “bight the bullet” about the amount of dollars paid.But is there rules a bank must follow in order to not take advantage of a client who has obviously paid into a mortgage enough? I know it sucks, but mortgages are "front-loaded" regarding interest. In other words, the VAST majority of your payments will go to interest for the first many years. It is only in the last ten years that you really clobber the principal! Thus, by refinancing as you have, twice, you keep starting the "interest-clock" ticking! The bank is following rules as allowed and as drawn-up in your mortgage note. Do not feel as though you are a "sucker", your mortgage is not likely any different than all the other mortgages out there. I have 148 months remaining on my term at a monthly payment of $769 equalling an additional $113,812 to the already $88,530 totalling $202,342 for a $90,000 home. I truly don’t see the cost advantage. There is not cost advantage, per say. The advantage is in tax deductions and appreciation of value: I do not know the present value, but it is likely to be substantially higher in 148 months. In the meantime, you are also writing off the interest. Home ownership is still a great investment OVER THE LONG RUN! What can I do? Please help any advice is greatly appreciated. Apply extra toward the principal every month or make an extra payment every year. This will reduce the amount to be paid and the time that you continue to make payments. Good luck!

Thanks kindly, Mark