Question
Home Equity Loan...getting ripped off????
Talked with a Countrywide rep about getting a $25,000 equity loan (not line of credit). I was adamant that there be no or very small ($500) prepayment penalty. He said it would be no problem as my credit is solid. I get the truth in lending agreement and the only thing I can find that say anyything about pre-payment is in the loan description where it states "fixed2nd equity 30 year/ 18.57%/Prepay. I am assuming this is some type of pre-payment penalty. If so the Countrywide rep is either incompetent or unethical. Anyone have a clue if this 18/57% is the prepayment penalty? I've called them and left a message but have not been contaced yet. Thanks in advance.
2 years ago - 4 answers
Best Answer
Chosen by Asker
no, the 18.57% is most likely your APR. Even considering the source, Your credit and equity situation have got to be putrid to merit something like that. Go see someone at your local credit union. For second mortgages, they're hard to beat significantly. (I do seconds for existing clients, but I sure don't chase them)
Source(s)
Loan Officer and Realtor in San Diego. Website www ...
2 years ago
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Other Answers
All loan companys/banks are a rip off..go to a credit union..
by xyz- 2 years ago
hopefull u haven't signed. don't want prepay penalty don't sign. the terms u got 'vacum' . go to a local bank/credit union fast. we got a 2nd at 8% on 15yr fixed no prey penalty.
by robert w- 2 years ago
No the 18.75% is the interest rate on your second mortgage. Who cares about the prepay penalty, you can get a credit with better terms. Go see a credit union or bank. If you have solid credit you should get somewhere near 7 or 8%. This means a difference of about $115.00 payment a month. You are getting ripped but not how you think. They aren't calling back because they don't want to answer questions and they are hoping you just say the hell with it and sign the papers.
by AlaskaMusher- 2 years ago