Subject: Re: Re: Primerica - simple interest mortgage confusion

Comments:
: : I am at a loss to figure out what in the world one of Primerica's agents is trying to tell me... : : The agent keeps telling me that Primerica is the ONLY company that offers simple interest loans - what?????? As far as I understand - every mortgage I've ever had has been simple interest and every car loan as well - meaining I only pay interest on the principal sum (not compound interest - like a credit card). She tried to tell me that since they are the ONLY company to offer this special type of loan, people have to pay a higher rate, but of course it pays off. WHAT???? : : Am I wrong here???? The agent is unable to actually tell me what in the world is so different about her loan, since she has no background in finance, nor has the agent ever attended a college course. Obviously I would never give her any control over my finances, but I am unable to even figure out what she's trying to sell me. I have a standard 30-yr fixed rate mortgage. Isn't it a simple interest loan? : : You're right, it's a simple interest loan. In a conversation I had with a representative from Citigroup Trust Bank, the representative made it quite clear that Citigroup's loans that are sold through Primerica are the same kind of loans that all other companies sell. The rep also made it clear that Citigroup's pre-payment penalties are not competitive, that there interest rates can, in some cases be as high as 18%, and that even if one accelerates their loan payments, the savings in interest is negligable. : PFS agents are independent contractors working in a multi-level marketing environment, and are not trained by the companies whose products they sell. Much misinformation seems to make its way into Primerica's network of independent agents. The idea that Primerica refers its clients to loan companies whose products perform differently than other products on the market is false. : Your best bet is to go to the source of the loan for information. Contact the loan company and speak to an experienced loan officer. That person will give you accurate details of how their loans work.

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