Tony
Indianapolis,#2Consumer 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,#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.