Nikki
Coconut Creek,#2Consumer Suggestion
Sat, April 14, 2007
HFC usually does simple interest loans. I have a 2nd with them and am trying to learn about them. I have them taking my payments out of my bank account 3 days early every month. In a simple interest loan, interest is figured daily rather than monthly with a regular loan. This mean that if your payment is due on the 1st, and you pay on the 3rd, 2 days of "late" interest is tacked onto your loan. Do this for many months, and it adds up. And many people do not realize that even being two days late every month can negatively affect them. Do an internet search for Simple Interest mortgages and read about them. I'm very sorry about your dilemma. The loan documents do not explain how they work, other than stating it is a simple interest loan. People don't really know it doesn't mean a regular, monthly traditional loan because they don't know to look for those two words, "simple interest".