Re: 3.95% TheSmartLoan.com ?? Any Opinions ??? - Posted by G Wmson
Posted by G Wmson on September 06, 2001 at 24:05:30:
Hmm. Well I got some information from them, but I don’t like what I’m hearing, least not for anything long term. the min. you can borrow is 75k.
It is an AMR. the 3.95% is a suck in rate to get ya to borrow money and is only valid for one year, after that the second year it goes to 7.5% and then the third year it goes to 8%, the cap is 11.5% but it will never be below 7.5% regardless of how low the prime is.
The only way I would go for something like this is if I can repay the loan within a year. I’m considering doing this myself on a house to fixup and flip,
then immediately pay it off with the profits and refinance whats left at something at like 6.5% somewhere else. When questioned about what the rate is tied to he said something about the COFI rate, but was very, very, vague about any kind of formula or percentage used to determine what makes your adjustable rate go up. The one thing that stood out to me was the fact that he could tell me what my payment would be in 2 years and again in 3 years. How could he possibly know what the discount rate will be in 3 years or the year after… All i got to say is be careful, use them, don’t let them use you.
Let us know how that works out.