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Got a question... Can anyone help me on a Lending Tree mortgage topic? Many thanks for any comment. Second question.. We currently are paying 15.99% on a Jeep loan that has 30 more monthly payments due ($346 a month). So I decided to apply for the Cap1 Auto Refi loan to get a better interest rate and lower our payments..

WE WERE APPROVED!!.

Should be great right? Wrong..

They approved us for the amount at 13.95% for 36 months which would make our monthly payments $395.10. WTF.

A lower interest rate, albeit 2.05%, an extended six months, yet our monthly payments are HIGHER??.

What to do?..

asked Feb 28 at 07:40

Gabrielle
's gravatar image

Gabrielle
92


Ye, but you might want to make sure and wait for another member here to confirm it as I am on the fence. Better yet, why don't you contact the Lending Tree guys because they can answer you better...

answered Feb 28 at 07:52

Ava
's gravatar image

Ava
4377

Yeah, looks fishy..

I back calculated your remaining balance on the existing loan to be $8510..

The payment I calculate on $8510 for 36 mo. at 13.95% is $291/mo..

There's some information missing here...

answered Feb 28 at 08:20

Caroline
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Caroline
4476

I just used my handy dandy, free download amort calc., and at that rate, term, and payment amount, it is showing your loan amount as $11,569.00.

3,000 more than Croft says you owe on the jeep now..

It sounds almost like they are financing your pay OUT not your pay OFF. Might give them a call...

answered Feb 28 at 09:42

Leland's gravatar image

Leland
3884

Are they assuming you want an extended warranty or that you don't have car insurance?.

I once had Wells Fargo Financial add all this junk in to a contract they made for me at a refinance..

Find out the specifics of the contract and ask Cap One to remove the fluff..

This IS a simple interest loan, right? Make sure of that, too...

answered Feb 28 at 10:23

Anastasia
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Anastasia
4571

Agreed.

What is pay OUT versus pay OFF ? .

Your not talkin' pre-payment penalties are you ?

answered Feb 28 at 11:18

Nevaeh
's gravatar image

Nevaeh
3699

Sorry - by pay out I mean what he would pay in total (p & i) on the jeep under his current terms..

346 x 30 = $10,380.

Well heck thats still 1200 less..

Never mind..

answered Feb 28 at 12:02

Edgar's gravatar image

Edgar
4073

What the loan will actually cost you in dollar amounts by the time you're done paying..

That is quite possible that someone got the wrong figure and went from there...

answered Feb 28 at 13:19

Valerie
's gravatar image

Valerie
3483

Jlynn:.

Thanks. Wow, that would be quite a weird deal..

Anyways, FWIW, I agree with Marci in that there's an unpleasing breeze from the direction of Denmark and the OP needs more info. from Cap 1...

answered Feb 28 at 14:47

Ernesto's gravatar image

Ernesto
4001

I called them back and they said they added $2000 for finance charges so my payoff amount of $11,591 is now $13,591 @ 13.95 @ 36 months..

She was like "hmmm, yeah you are paying more than you were before. Well, that's the deal. We can't change the interest rate. We have to make you an offer and that's our offer.".

I told her to cancel the app..

So I"ve taken another hard inq for damn nothing...

answered Feb 28 at 15:18

Heidi
's gravatar image

Heidi
4282

I'm lost. Your payoff amount is $8510. Call your current lienholder and verify..

Cap One I don't think can add 2K (actually 3K)That could very well be a violation of TILA..

Their offer is 13.95 at 36 months. I would make a big stink...

answered Feb 28 at 16:18

Makenna
's gravatar image

Makenna
3282

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