My Banker Sucks

I hate my banker.  Is that okay to say in a public forum?

When I first bought my house back in 2005, I was a newbie to the whole home ownership thing.  Like a lot of other freshly divorced females, I had no idea what my buying power was and thus, when I applied for and received some creative financing for my home, I signed the papers without a second thought.  I was dumb and as I've come to find out, not nearly as desperate as I thought I was.

The loan was structured so that the first mortgage was for 85% of the value of the home and the second mortgage was for 15% to avoid paying PMI, as advised by my intrepid banker.  The first two years, I paid interest only on the first mortgage, as was the rage at the time.  We were all pretty excited about housing values and annual appreciation.  Well, you know how that turned out.

After the first three years, the first mortgage converted into an ARM with a cap increase/decrease of no more than 2%.  That's actually worked in my favour the last couple of years as interest rates have remained very low.  The second mortgage was a renewable, 2 year balloon note amortized over 12 years.  My latest maturity date on that one is October 10th.  I've been working with the banker to get that note renewed and I cannot believe the information that he wants from me for a relatively small amount of money.  I've sent tax returns, W2's to verify income, an application, etc and now he wants the tax returns from my company, as well.  I've sort of had it with him.

To date and encompassing the last seven years since buying the house, he has collected nearly $100,000 IN INTEREST from me.  That figure just slays me.

I've never missed or been late on a payment.  I make one extra principle payment every year and extra payments on the second mortgage every month.  My credit report is exemplary.  I just don't understand why the process is so laborious.

On the second mortgage, I have allowed them to charge me too much interest because of the hassle and costs involved in finding another lender who will accept a 2nd mortgage application in the current economic climate.  Lazy and complacent? Probably but my point is that they've had all of my business plus loans for cars and motorcycles that were paid off early and still, this guy is giving me grief, which leads me to believe that at the end of the day, he will present me with paperwork with yet another outrageous interest rate citing this circumstance or that circumstance.  I understand profit.  I think profit is good and necessary.  I don't begrudge anyone profit.  However, there is a difference between profit and greed and considering the fact that this bank just happened to be one of those institutions that accepted government bail out funds, their greed is especially repugnant to me. 

Because of our situation, the home is classified an investment income and thus, can only be considered for a total mortgage of 75% loan to value of the home.  We aren't there yet but we're getting close and the second I am able to refinance, I will. 

In the meantime, I await the next email missive from my unconscionable banker and count down the days until I can take my business elsewhere.