3. Written by Primerican, on 28-06-2008 14:12
What they can't understand is why you insist on opening your mouth in regard to math you clearly can't do very well. What makes our loan different is that it's a DAILY COMPUTED INTEREST, which is what makes it easier to pay off, not just the fact that it's a fixed rate. And even if you find a loan like that outside our company (which CAN be done, but is not easy) you WON'T find anyone that will then help you stay disciplined and invest the difference. There is nothing ANY company can do that there isn't another company out there doing the same thing. Someone once was quoted 20 or 30 years ago as saying that someday everyone would have all the same products to choose from, and in the end, the only companies that get ahead will get there for the SERVICE that their PEOPLE provide... not the products.
But let's play...
Hypothetical situation:
You have 100,000 dollars left on your mortgage, and you have 18 years left on it. You can get a refi from Citimortgage (as you stated) in a fixed mortgage that is NOT daily computed, because NO, you probably WON'T get that directly without us, and you managed to get, say, 5%.
Your monthly payment would be about 703 a month, you'd be paid off in 18 years, paying a total of 51,855 dollars in interest, total cost: 151,855 dollars.
OR
You get the SAME loan for 18 years (because we ALWAYS refi for the same term or a SHORTER term, we NEVER stretch you back out... good luck finding that somewhere else as well) with the $MART loan, split your payment in half and make bi-weekly payments equalling 703 a month. Because the payment is credited to your account the DAY it's received (unlike a pre-calculated interest loan, in which the lender sets that payment into a seperate account until your payment is due, and then credits your loan with the full payment on it's due date, which results in saving far less interest in the end... that's called a "pseudo-biweekly"... look it up on MSN money), that instant credit knocks down the amount of principle upon which your next 2 weeks of interest is based. Thus, less interest is accrued by the date of the next payment, and more of said payment is eating into principle, rather than being laid to waste in interest. The net effect is that your $MART loan, thanks to the equity builder bi-weekly payment program, is paid off in 15 YEARS AND 5 MONTHS, and you save 10,661 dollars of interest, for a total cost of 141,184 dollars, and OWNING YOUR HOME TWO AND A HALF YEARS SOONER.
So YES, actually, the $MART solution is better.
sorry to burst your bubble.
Keep trying though, bud. this is kinda fun.
100,000
18
5%
703
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