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Is it too good to be true?

There seems to be no shortage of bad opinions on Primerica....mostly centered on working for them.  I don't care about working for them---what about their mortgage refinance?  They claim with how they calculate interest that even though your rate will definitely be high, you'll pay your mortgage off much quicker.  Sounds too good to be true.  If it works, why doesn't everybody use them?  Why so much disdain?  The rep showed me amoritization tables that supported his claim...
  • January 29 2009 - Des Moines
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Answers (4)

You consolidate your debts...not a bad thing for it to work you need to apply those payment savings to the principle on the new loan.  Why pay a higher rate?  Get a competetive rate and apply your monthly savings to principle each month and you get a better result at a lower rate.
  • January 29 2009
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Simply put, if you want to pay off your mortgage faster, then do as Andrew suggests and pay toward your principal on a desired scheduled. For example, you can pay off a 30 year mortgage in 18 years at $X amount/month. 
The only way ANY of these types of things work is if the borrower COMMITS and has NO unforeseen circumstances that may hinder their progress. That is very rare, as most people go through life with many ups and downs- lost job, new baby, etc... It all depends on exactly what you are looking to do.
  • January 29 2009
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I guess, more specifically, what I wonder about is this:  Most people who trash Primerica's refi do so because of the higher interest rate.  But why does it matter if the interest rate is higher if you're paying off the loan faster with their refi?  My payments don't go up and I pay off the loan faster.  So what if I have a higher interest rate?
  • January 29 2009
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I can show you charts and graphs till your blue in the face......how accurate are the charts?  Only way to pay a mortgage off quicker is by priciple reduction....that can only be achieved if you have residual income that you can apply to the priciple!

What they propose is nothing more than paying down principle!
  • January 29 2009
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