My son was getting married a few years ago and I really wanted to help out with the wedding. I also had just recently gotten divorced and wanted to get my finances in order. My home was paid for in cash so I thought I would take out an equity loan, get rid of all my credit cards, have money to help my son and be able to take the interest off my taxes! Good idea huh?
Well all in all it worked out but it was a lot more work and money then I thought it would be. First I live in a manufactured home in a community. For some reason banks don't like homes in parks! Number two they really don't like manufactured homes either.
I finally went online to my bank Fifth Third and saw that I could apply for the equity loan right online. Wow how convenient! Filled out the necessary information and sent it in. About 3 days later I got a call from Fifth Third to discuss the loan. Seemed like everything was going great. She told me she didn't think there would be any problems!
We discussed the length of the loan (now mind you I told her I was in a manufactured home and I did not own the property) she said no problem I would get a 20 year loan at about 6% interest. I was so happy everyone else said 10 years max and 10% interest.
About 2 weeks later I received a call from Fifth Third and they said everything was going great, few little glitches, needed more information blah blah. Provided them with all the information they needed and waited.
About 3 weeks after that I finally heard that the loan had gone through and I could go to my bank to sign my paperwork. All excited I headed off the bank. Boy did I get the surprise of my life when I got there.
#1 - The loan was for 10 years not 20
#2 - The interest rate was 10% not 6%
When I questioned all of this they said this was the best that they could do and proceeded to tell me everything everyone else had told me! When I asked about what I was told on the phone when I started this they said oh she just must not have known!
I was very disappointed, I did close and got the loan but only because it was all set and I already knew that this was probably the best I would get and it was still a better deal than paying the interest rate on my credit card. It has worked out and I have paid it off early but I am upset that they weren't up front with me!
Oh yeah the other problem, for the few years that I had it every year they would make me fax over proof of house insurance and then claim that I needed flood insurance. It would take me about a week to straighten it out and make them understand I didn't live in Texas and I wasn't in a flood zone!