Primerica Mortgage refinance Rip-off deceptive practice by Sales Rep Forest Lake Minnesota
A good friend of mine refered me to Primerica cuz she is just starting to sell their product of refinancing and insurances. Her trainer came to my house and explained to me and my husband how much money they will save us by applying "simply daily interest" at a higher interest rate. They wanted us to pay a 7.08% rate on a mortgage and include any credit cards, junk vehicles and what ever (this is financial advise to go bankrupt) you never consolidate short-term debt with long-term debt unless you have no way out of the hole.
Anyways if we would of refinanced with Primerica we would have paid an additoanl $33,000 interest versus paying $4000 in fees to a mortgage broker for a 5.5% interest rate. Their "simply daily interest" application was a bunch of mumbo - jumbo. Cuz what "simply daily interest" came down to was pay an extra payment on your mortgage a year, which is common knowledge and you do not need Primerica to pay bi-weekly or one extra payment a year.
Julie
Plymouth, Minnesota
United States Minor Outlying Islands
2 Updates & Rebuttals
Tony
Indianapolis,Indiana,
U.S.A.
savings are a myth ..Primerica, of course, won't tell you this. They truly believe the early payments produce an actual savings.
#3Consumer Comment
Thu, April 03, 2003
Good response, but realize that "saving" interest payments comes at great cost. Specifically, you have to spend money today to avoid spending money tomorrow. With home interest rates at an all-time low (outside of Primerica, anyway), you're not getting very good return on your money when you spend $$ today to avoid spending $$ 15 years down the road. There are still some other options to help you get the best return -- in other words, money invested today will be worth MORE than the interest payments in the future. You just have to be careful. Primerica, of course, won't tell you this. They truly believe the early payments produce an actual savings.
Ken
San Jose,California,
U.S.A.
Simple Interest Mortgages Make Sense ..What Primerica does tell you is that they are the only lenders who can do this.
#3Consumer Comment
Thu, April 03, 2003
I am a mortgage broker.
The theory behind the Citibank Trust (formerly Travelers Bank and Trust) simple interest loans is valid. Most lenders are more of a rip off, but common folk don't believe they have a choice.
The problem with Primerica's Citibank Trust mortgages is the upfront costs are expensive. It is true that they will save most folks a bunch of money in interest.
Contrary to your statement, this has less to do with bi-weekly mortgages and more to do with simple interest calculation.
What Primerica does tell you is that they are the only lenders who can do this. NOT TRUE. Several other lenders offer similar programs, but you do have to specifically ask for such programs.