Quickenloans.com
$500 upfront fee ripoff scam and advertised interest only payment amounts are misleading Livonia Michigan

Beware of two things when contacting Quickenloans.com

1. Do not give them any money up front if they ask for it. I mistakenly authorized them to charge my card $500 before any service was performed. I'm working with them on getting this money back because the advertised payment amounts are misleading and I will not do business with them.

2. They adverstise that you can pay $950 a month on a $300,000 loan. This is based on the current libor rate plus a margin. What they don't tell you up front is that your initial rate is based on the 10 year Treasury plus a margin, not the libor rate. The libor index is only used after your loan moves passed the locked period.

Although your payment is interest only for a period of usually 3 to 5 years, your interest only payment may really be $1200 - $1300 (not including taxes and insurance), not $950 per month.

After the locked period, your loan will require interest and principle based on the libor rate plus a margin. My guess is that the libor will be quite a bit higher in a few years when all of these interest only loans move passed the locked period.

3. If you really need to do this type of a loan, try Lendingtree.com. At least you'll get several sources to choose from and you may do better by going threw a bank that may not charge you the same up front loan points and especially avoid anyone who wants to charge you an up front fee!

Company: Quickenloans.com
Country: USA
State: Nationwide
Site: www.quickenloans.com

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