What a bunch of crap

[400/6/PAC]

I'll try to make this short.
I found out that I owe 4,000 in taxes this year.
I have the money in the bank to pay them but thought I will get a bank loan so I can have a year or so to pay it off.
Went to my bank, applied for a loan of 4,000. The loan officer said if you borrow 4,000 the interest will be 12.99% but if you borrow 5,000 it will drop to 8-1/4%.
So I said lets do 5,000.
The next day I got a call and they told me I was approved for the home equity line of credit that I applied for.
I told them I didn't apply for a home equity line of credit, I applied for a personal loan.
So I go back to the bank and talk to the person that handling my lone, She said that she went ahead and applied for me.
Heres the FU$%&^ed up part.
The loan I applied for At 8-14% jumped to 20.99%. With a score of 714 and no late pays or collections.
She said lets go ahead and do the personal loan and then you can pay that off with your home equity line of credit.
I think they are just trying to push me into a home equity line of credit.
Dose this sound messed up to you guy's.

[Spike]

Tell them you'll get a loan somewhere else. They'll straighten things out in a hurry.

[Shakey]

Tell them you'll get a loan somewhere else. They'll straighten things out in a hurry.

I actually enjoy negotiating with financial institutions.   

[Bandit4142]

That's bullshit.   With your credit score, and payment history, you should qualify for something considerably more reasonable.   And the fact that they are pushing a HELOC is utterly ridiculous.   I'd look elsewhere for financing.

[red72chrgr]

Like he said, go somewhere else. We were having new windows put in our house, the loan co. tried sneaking a second mortgage on us at 14 3/4 percent. Guess you know the rest.

[400/6/PAC]

I'm supposed to go sign the papers tomarrow.
It aint gonna happen.
I remember when bank transactions were on the up and up.
Now they prey on unsuspecting people.

[dads_69]

Its a case of they have the cash and you don't. Welcome to the real world.
Looks somewhere else vs your bank like everyone has stated. Newbies........
Also, hes not making a lot of sense either, has the cash but doesn't want to use IT? What a screw ball. And being a newbie, and asking our opinion about what should HE do? Its almost like him asking, should I or shouldn't I jump off a bridge cause someone asked him to.

[Neal_J]

You say you have the money in the bank, so use it.   

Why take out an 8% loan if you're probably earning 4% at best on your savings?

Oh and get someone better to do your taxes so you don't get a 4 grand facial. 

No charge for the free advise...

Neal J, CPA

[TK73]

Is anybody else here getting the fact that he HAS the money but wants to pay a bank a MINIMUM of $412.50  ($5000 x .0825) for a loan over the next year to pay the taxes??

Am I missing something here??

[PocketThunder]

Is anybody else here getting the fact that he HAS the money but wants to pay a bank a MINIMUM of $412.50  ($5000 x .0825) for a loan over the next year to pay the taxes??

Am I missing something here??

thats the way i read it.   

[Mike DC]

   
For 21%, I could put you in touch with a shark named Vinnie.


Seriously, let the bank know that you're not gonna be doing business with them for anything other than a straight-up $4-5K loan.  Tell them that your home equity is not part of the conversation (except maybe for use as collateral).  The bank may take it or leave it, but either way your credit history shouldn't have them bending you over like this.  Shop around and you'll probably do a lot better.

 

[Silver R/T]

find another loan officer. When we were buying house we had a loan officer that checked my mom's credit score and said she DIDNT have any WTF huh. So we found another loan lady and she said mom has perfect credit and we got 5.8% rate on mortgage.
Personally Id just pay them off 4 grand and be done with it.

[NHCharger]

One of the women in our office use to be a branch manager for one of the larger banks in our area. I've heard many  horror stories about all the hidden fees, bait and switch tactics with interest rates and loans, preying on people with poor credit, racial profiling, etc. They make used car dealers look honest.
I would definitely go elsewhere and pull any accounts I have at that bank.

Also if it was me, I would just pay the IRS bill if I had the money on hand, and borrow some money later if I needed it.
Why pay interest on a loan when you have the money to pay it in the bank? It's not like the interest you earn on that bank money is more than the interst you pay on the money you borrowed.

***Edit** OK, 5 guys were thinking the same thing while I typed out my reply I've got to type faster.

[Old Moparz]

One reason a bank will want a home equity loan over a different type, is that they will automatically have dibs on your home if you default on it. Yes, other type of loans could eventually put a lien on it, but the loan tied to your house makes it easier for them to force a sale much quicker so they can get paid.

Personally, I would pay outright for what you're trying to get & skip the loan, but you have your reasons I suppose.

[Old Moparz]

***Edit** OK, 5 guys were thinking the same thing while I typed out my reply I've got to type faster.

Yeah.   

[400/6/PAC]

Dads 69
Your the kind of asshole that runs us newbieessss off this site.
I was only asking what you guy's thought about the bank tactics.
Did you happen to notice that most of the other guy's actually had something positive to say, exsept you ofcourse.
Why dont you go drink another beer.

[400/6/PAC]

I do have the money to pay the taxes but it would would leave me very short on cash.
Thats the reason for the loan.
I didn't mean for this thread to become a topic about my financial statis, I wanted to ask about banking tactics.

[Neal_J]

Well, gee, I guess you're fishing for a "banks suck" response so here you go:  banks suck!

Unfortunately, and with all due respect, the bank staff may have pegged you as not the sharpest knife in the drawer.  Consider the following from the Bank's perspective:

(1) You have a *suprising* tax bill of $4000 (Bank:  Hmmm, he's not financially savvy or very tax-smart.)

(2) You're willing to pay interest on borrowed funds despite having the cash (Bank:  Hmm, he's willing to incur unecessary interest payments.)

(3) You take a loan in excess of your needs: $5,000 vs. $4,000 (Bank:  Hmmm, he's easily manipulated and thinks nothing of the additional interest on the extra 25% of increased loan balance.)

(4) You decline a home equity line in favor of a personal loan (Bank:   Hmmm, he's willing to take a non-deductible loan rather than a likely deductible equity line or equity loan - once again not tax-smart.)

With four strikes against you, do you really think it's the bank's fault they tried to gouge you on the rate??   That, I believe, was exactly Mark's (Dads) point above.   

Whatever.  Yea, right, amigo, it's not you.  Banks suck!!

Neal, CPA
(yes, really)

[Steve P.]

For what ever reason you want to barrow money is no skin off any of our backs. As far as banks go, I have found over the years, that Credit Unions tend to have better rates and will do a better job of getting you into what you can afford. This is from my experience. I speak for no one else.. 

[Rocky]

 

[dads_69]

Dads 69
Your the kind of asshole that runs us newbieessss off this site.
I was only asking what you guy's thought about the bank tactics.
Did you happen to notice that most of the other guy's actually had something positive to say, exsept you ofcourse.
Why dont you go drink another beer.

Read what Neal J wrote to you. Thank you also Neal J. Yes, that was my point, I didn't think I would have to spell it out for him, I thought I was being savy, an calling me an asshole, dude, is that the best you can come up with? Go ahead, get your loan for 5 grand and screw yourself, thats the best advice I can give you since your not reading between the lines anyways. By the way jackass, I don't drink either, I just call them as I see them......Cry baby.........
Mark

[400/6/PAC]

Its a case of they have the cash and you don't. Welcome to the real world.
Looks somewhere else vs your bank like everyone has stated. Newbies........
Also, hes not making a lot of sense either, has the cash but doesn't want to use IT? What a screw ball. And being a newbie, and asking our opinion about what should HE do? Its almost like him asking, should I or shouldn't I jump off a bridge cause someone asked him to.

You call me a Screw ball newbie and wonder why I called you an asshole??
It's not the IRS that I owe, it's property taxes.
I am a first time home owner and my mortage company takes out escrow to pay the taxes.
Because I'm not  the sharpest knive in the drawer, I didn't realize that the escrow would cover taxes for the second year I am in my home but the first year was up to me.
I wasn't prepaired for that.
Dads69 sorry I called you that.

[Paul G]

If you have the cash in the bank use it. Pay your taxes with it. If you are willing to make the payments on a $4000 loan amortized over one year make those payments back to yourself. In one year you will have your money back plus interest.

Start shopping for a HELOC right now. You can find deals out there that will open a HELOC with no closing costs and sometimes without any fees at all. Use that as your emergency back up funds if the need should ever arise.

Yes banks suck! Savvy consumers rule!

[mikepmcs]

I'm with Steve P on this one,  try to find a credit union to join..  They have better rates and programs normally. I personally would not get a HELOC but a straight forward equity loan if you have built up enough to do so.
It sounds like your mortgage company kind of screwed you on the escrow monthly bit for you to have to cover the Property taxes.  None of my business but wondering what mortgage company you have, was it a broker you went through or a bank.....(just questions in my head)
No matter, I would prefer the equity over the personal loan due to the fact you can claim the interest paid on your taxes, i don't believe that is the case on line of credit loans all the time.  You can't claim it on a personal loan.

Next thing I would do after figuring out your loan situation is refinance your mortgage with another institution. Once again, find a credit union please.  You'll be much happier.

If you have any family military connections, get in to Navy Federal, Pentagon Federal, etc..... if you can.

Even USAA is a great banking institution. Do they do mortgages, I'll have to check.

I'm still confused on why your mortgage company dorked you on the escrow to cover taxes, that should have been included, or rolled in to the original loan if nothing else.
That alone would cause me to seek another financial institution that is taking more of an interest in my situation then just putting another notch in their post.

good luck, you'll get it sorted

v/r
Mike

[mikepmcs]

https://www.usaa.com/inet/ent_utils/McStaticPages?key=become_member_main

looks like parents have to be usaa members or military but here's the link to USAA.

There should be local credit unions around you as well though.

v/r
Mike