My husband and I are small time home investors. We were in the middle of re-modeling a home however; we were running out of money fast. However, we had to complete the job so they we can put a mortgage on the home to cover most our out-of-pockets expenses. I received a letter from Citifinancial stating I can get thousands of dollars. Fast. When I signed the contract I noticed that the extremely high interest rate, however I was in a bind and had on intentions of paying the loan off quickly.
I made sure there were no prepayment penalties, and I thoroughly explained to the representative, my horrible experience with Beneficial and wanted to make sure that Citifinancial was not similar. I told her that I should have the loan paid in 6-8 months no longer than a year, so I didn't need at 48 month loan, however she said it's best to have my payments low just in case something unexpectedly happens, plus I can always payoff the loan early with no prepayment penalties.
I borrow $7,650 they added $150 service charge. Nonetheless, I paid around $2,500 so far and my payoff is still a little over $7,000. They accumulated the interest base of $12,000 at 20% (the amount if I paid in 48 months) and they first 18 months goes to interests, which she did not explain to methat's why they push the 48 months. Their practices are shadyPlease beware!!!
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