PNC Bank Formerly known as National City Bank We bought a house in 20034, borrowed the 20% down. My wife and I were never told it was a balloon loan. Now when we go to pay extra on the principal , it is nothing but a big hassle. Pittsburgh, Pennsylvania

I can't understand what your issue is. I have taken out plenty of 1st and 2nd Mortgage loans with many different banks. At the closing they exlplain everything about the loan contract to you word for word before you sign. If you had any questions or conserns about prepaying, you should have asked about them then before you signed on the dotted line. Now that your stuck with this Loan and the Bank won't refinance you don't blame them. Most banks have a policy not to redo there loans within a specific time frame esspecially if the interest rate has moved in a direction that would benefit the customer. If your credit is good then go get another loan at another institution. But this time, tell them what you want upfront and pay close attention at closing making sure your going to get it.

Is this a second mortgage, used to pay what should have been your own 20% down payment? I assume that to be the case, meaning you'd also have a primary mortgage on top of this for the other 80%. How could you not know the type of loan you're taking out? Is your 1st mortgage also with PNC? What type of mortgage is that? How could you not know the terms of such a loan? It just makes no sense. A balloon loan sounds like an interest only loan, where you're only paying interest until such a point arrives where you must pay off the actual principal. I'd think there wouldn't be provision in such a loan to nibble away at the principal short of a total payoff.

sucks real bad.

It's probably too late, but you might consider reading it.  :(

You share culpability with the bank.