Worked with 5 different employees throughout the process of the loan. i was told that to bring the mortgage payment down we can refinance with an interest only loan for 5 years at 2.5. i was informed that the principal will not go down. at the end of the 5 years it will still be the same amount that was borrowed. i just noticed while picking apart the mortgage statement that i have an ARM with a pick a payment. my principal balance is now 5000.00 more in just 5 months. i called morgan funding. they said they see how there could have been a miscommunication. there was no miscommunication. someone had warned me about then negative amortization. i asked over and over again and was reassured no negative amort. the rep said to get out of this mess i would have to refinanced at a fixed rate. he said i would have to pay a prepayment penalty and of course closing cost. he never attempted to take responsibility for the lies. the 5 people that i worked with have all left the company. please help stop these people. its now two weeks since i have noticed this problem. i have to sell the house to get out of this mess before the negative amortization puts us in the minus.