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by CareyBot

DEAR BOB: We look forward to your educational and entertaining columns. But now we have a real estate problem we never expected. About a year ago, we bought our home with the help of an adjustable-rate mortgage at 1.95 percent interest. We knew it would adjust after six months to 4.95 percent interest. That was quite a jump in our monthly payment, but we handled it. However, when we received the lender's Internal Revenue Service 1098 year-end report, we learned our mortgage balance has grown by about $7,800. When I called the lender, I was told the increase was "unpaid interest." What's that? --Jerry G. DEAR JERRY: The lender should have explained the 1.95 percent "teaser" interest rate and your current 4.95 percent interest rate don't fully pay the ARM interest rate, which probably adjust...