CommentPage 1 of 3
The BIG Smoke & Mirrors loan—SMART Loan.
If you want to pay your mortgage off in 20 years, the mortgage industry (including Citimortgage) has something to accommodate that—it's called a 20 year mortgage. I wish I had the time to go through the numbers right now, but you all can check it for yourself. Run any SMART loan scenario’s total annual payment (including the 26 payments) against a 20-year fixed loan with a “normal” interest rate and you’ll find that the regular old 20 year loan will have a lower:
payment monthly/annually
total payment to finish the loan
fees to get the loan
NO pre-payment penalty
Comparing to a 30 year loan, the SMART loan will accelerate the payment, no question about it. Do you HAVE to have a 30 year loan to begin with? NO!!
Also, the simple interest thing will DESTROY you if you’re ever late. The same power of simple interest saving you money when you pay bi-weekly, hurts you when you miss a payment. The interest compounds DAILY.
So, if anyone’s argument is that the client doesn’t want to be “committed” to a 20 year loan, here’s my rebuttal:
If they can’t afford my 20 year theory, they can’t afford your bi-weekly payment either. They can always get a HELOC in case times are tough and they can’t make the payment. It’ll be a lot cheaper than adding simple interest to their mortgage, NSF fees at the bank and being locked up by HUGE pre-payment penalties.
THINK OUTSIDE THE BOX
As for the “opportunity”, anyone that is bright enough to beat the enormous attrition rate that Primerica has can easily get a job that pays a salary. The person won’t have to annoy their friends and family trying to recruit them and finally will be able to offer clients less expensive products, with better features.
 Comments (23) |  |
| 1. Written by Licensed Broker & Securities, on 18-12-2009 19:02 I joined Primerica about 6 months ago. I also have my brokers license and securities. I have learned over the past several years that I always hated the SMART loan similar to this guy Wholelifer.... we all hated it. We just dont have anything to compete.... I mean really all these comparisons and suggestions to a 15 year/20 year mortgage are not likely. Nearly all Americans will never qualify for this sort of loan that he continues comparing to the SMART loan and that is why they almost never exist. However, with the SMART loan there are millions of families that will qualify for this loan!! Which at the end of the day is the right way to cater to a family's financial needs. Period. In addition, as for his insurance comments; if you have ever considered buying term and investing the rest there is no comparison that anybody can show you that proves more financially sound than this concept. He knows that, trust me. However, he also knows that his commissions are about 4-5 times higher selling families whole life which advertises savings accout.... borrow against your own money, if you die your spouse only gets the death benefit, not the savings as well.... and the list goes on and on. Hence, his pockets have probably felt the benefits several times over.... the reason I know is bc I did it for years. I sold families whole life policies and knew it wasnt enough coverage if mom or dad prematurely passed... I didnt care. I did it for the commission check. But you know when you deliver that check for $100,000 to a mother of 4 who has $135,000 left on a mortgage, bills to the ceiling, 4 mouths to feed.... I know I did a disservice to that family bc I could have protected them with 3-4 times the coverage for less money. So his comments.... I understand. I was there at one point as well. And to tell you the truth, Im almost 100% sure that he is likely one of the "greedy" mortgage individuals that put families into ridiculous loans they couldnt afford to better his position. I hope he is forgiven. These simple principles are the reason I joined Primerica. Sure it has been a pay decrease, however, I know that Im surely "helping" families. And sir/madam, please consider your morals before you cover a family by asking them the question, "How much can you afford," versus "Im going to take a commission hit, however, lets do the right thing." God Bless |
| 2. Written by pj, on 19-11-2009 22:32 everyone's a critic and there will always be someone to critisize. There are people in this world who were ment to be skeptical,and then there are those who are not, at least someone is out there working for middle America in a very positive way!!! |
| 3. Written by Just a thought, on 09-11-2009 21:01 I believe that you make you owm choices in life amd each loan and marketing stradegy is different and some are good and some bad. All people have to do to make this a simple process is read all material in a loan packet and make sure they understand it. And for they job opportunity at Primerica, It will work for you IF you work with and understand the product. Along with being honest to all parties. |
| 4. Written by Dan, on 07-09-2009 16:38 You guys are all idiots!!!! Run the numbers for yourselves, it's not hard math....... you will see how you are being screwed!!!! Primerica is not always the best answer.... but at least they are trying to help!!!! |
| 5. Written by sangoma, on 28-08-2009 09:17 Whole Lifer, I am interested to know more about your career and industry |
| 6. Written by B. Richardson, on 28-08-2009 09:12 Whole Lifer, I am looking to make a career shift and would like to know more about your industry. |
| 7. Written by seansterling, on 25-08-2009 20:02 hello  |
| 8. Written by Whole Lifer, on 02-08-2008 13:57 When did I "put down" term life? GO drink the Kool-Aid! |
| 9. Written by Ford, on 30-07-2008 20:19 Whole Lifer... you're an IDIOT!!! Do us all a favor and SHUT UP! You have no clue what your talking about... The minute you put down Term Life insurance, i knew you were an IDIOT! How can you even begin to compare whole life with term life... And as for your toughts on Primerica, I'll say it again SHUT UP!!! You have no idea what Primerica is all about... I'm sure the only reason you got demoted was because of your un-ethical thinking... If you'd stop thinking about yourself for a second and actually thought about someone else and what's best for them, maybe you would still be in Primerica making millions... But fortunetly, selfish, arrogant IDIOTS don't make it far in Primerica... Thank GOD!!! Trust me Primerica is better off without trash like you ruining their name!!! |
| 10. Written by Primerican, on 21-06-2008 21:01 You're right... we don't get paid very well on loans. Because we're not mortgage brokers. If we made good money on it, we'd want to keep people in those loans the same as everyone else. The best income in our company is from investments, and residuals therefrom, which helps to motivate the INTELLIGENT agent to focus on freeing up money to invest. The client has more money in their IRA than if they didn't do business with us. Yes, sound like we're taking advantage of them. Golly. |
 |
| Comments on The Not-So-SMART Loan from Primerica | |
Consumer Forum is another great place to discuss consumer concerns NOT RELATED to this article. |