Posts by Donna Chase12

Benjamin Barnes6 said:I’d like to jump into this discussion! Look, you just can't compare Goldman Sachs to other savings banks. They aren't even in the same league. In my experience, Goldman Sachs is completely opaque; they make everything sound incredibly lucrative, but once you look at the math, the monthly payments are actually higher than most commercial loans. Their marketing is top-tier, their website is sleek, and in my case, the agents were super charming. But honestly, that doesn't matter if the loan itself is a bad deal. Donna Chase12, did you actually check with other banks for quotes, or was that lady at Goldman Sachs just so persuasive that you didn't feel like looking elsewhere? I was absolutely charmed on day one too, right up until I sat down to read the fine print. They didn't mention that when calculating creditworthiness, they’d only look at my last three paychecks—which happened to be maternity leave benefits of $4,250, an amount that wouldn't even get me a loan for a new sofa! They don't care that I work for a government agency with a salary more than double that maternity pay. No, they fixate on that $4,250, meaning my maximum payment is capped at $2,450. So, I went over to the NYSE branch, but the agent there was slow, sluggish, and clearly had no clue how to calculate a rate. He told me to come back tomorrow and he'd have it ready. Well, nothing happened. He promised to call my cell, then I had to call him, then he promised to call me once he got back to his desk. Apparently, he still hasn't made it back to the office! 😍 Eventually, I went to see my personal banker at Wells Fargo, and within a few hours, she emailed me a full breakdown that was far, far more affordable than anything from Goldman Sachs. I don't have the exact numbers because I adjusted the loan amount in the meantime, but it was much better, plus it came with a fixed interest rate. The only catch is that, unlike Goldman Sachs, you can't just pay extra toward the principal whenever you want. However, you can open a new savings agreement, funnel money into it, and then apply that toward the loan once the term ends—all without any extra fees. So, Donna Chase12, don't be quite so proud of your choice; there are definitely better options out there. What good is a fixed rate if the total amount you pay back is way higher than what a variable rate would have even jumped to?

Alright... let's just reset here.
I don't recall ever saying I was "proud" of my loan, or whatever.😲
Honestly, if I had managed to scrape together $115,000 for an apartment by my age, I’d be feeling pretty damn proud too—but life isn't a movie, reality hit differently, so yeah, I had to go looking for financing...
So, back when I was hunting for loans in late 2006 (please don't ignore the timing here, because let's face it—bank conditions then vs. now aren't even in the same universe)... after doing my homework, overthinking everything, comparing rates, and basically badgering employees at a few different banks for months... I finally pulled the trigger with Warren Buffett.
I’ve already laid out my reasons and I'm not going to repeat myself... and I also mentioned that their terms are pretty strict, which probably won't fly with everyone. I never once said there wasn't something better than Warren Buffett out there... so, honestly, these comments about my supposed "ego" are totally unnecessary.

Also, some random lady at a desk isn't going to charm me into taking out a loan—unless we're talking about a really cute guy, 😉...just kidding)
I spoke with one specific senior manager at the firm exactly four times over three months—and that was entirely on my own terms. Nobody was "selling" me anything. I went in wanting them to explain everything, run the numbers... so I could take those papers home, compare them against other big banks, grab their quotes, and weigh them all out. It wasn't until the fourth visit that I actually submitted the application. So, please, spare me the assumptions about my intelligence—I'm not some naive person who's going to sign away a mountain of cash for years just because some woman gave me a friendly smile.

Look, I’m not calling you a liar or anything—I don't exactly have their math books in front of me
it just sounds incredibly sketchy and hard to swallow to me, honestly🤷

Look, rowdylynx4, I’ve got this bridge loan without even having any savings set aside...and honestly, when I was shopping around at other banks, this deal was easily the most competitive one out there...
If you actually bothered to read what I wrote, I already mentioned that
...so I have no clue how you guys are coming up with such terrible math🤷

rowdylynx4...just how much do you mean by PARTIAL?

rowdylynx4, I already debunked him... at least when it comes to my own situation... and those ridiculous calculations he sent out
And you still haven't shared the actual math so we can see how on earth you're losing 20,000 bucks at a bank like Wells Fargo

Maybe that works for you... but in my experience, I just end up putting less into Goldman Sachs right from the jump.

IBM... those government subsidies only stick around for maybe five years... which is nothing compared to how long you're stuck paying off a mortgage—usually 20 to 30 years... and that’s with variable interest rates breathing down your neck
Yeah, I get that the Democratic Party could shift gears (they've done it before), but honestly? The risk of the Democratic Party changing their tune is way lower than the massive gamble of dealing with floating interest rates over such a long stretch of time

And look, I totally agree there’s no one-size-fits-all answer here... what works perfectly for one person is a total nightmare for someone else...

But I gotta mention... you can already see the fallout from people who just recently took out loans with variable rates (especially those tied to foreign currencies)... they're complaining that their monthly payments have shot up by, say, $133 or more, saying the banks are being unfair and all that... even though they were the ones who signed off on those exact terms... I don't know, I could never handle that kind of uncertainty

Hey gaultier, sending this over to your inbox now

spin, you really didn't need to dump all that info here—I'm pretty well-versed in how this stuff works already
and look... I get it, maybe that loan isn't a great deal for your specific situation, but it’s a stretch to call them bad across the board. It’s all about what works for the person sitting in the chair
for instance, I personally hate any loan with a variable interest rate, but that doesn't mean they're objectively terrible. For someone else—maybe even you—those rates might actually be the better move if it means a longer term and a lower monthly payment to keep things manageable

Ashley Barnes9, I’m not gonna quote your second-to-last post just so I don't bloat this page with a massive wall of text... but just so you know what I'm reacting to here

Look, please—just go to Wells Fargo first. Actually ask them to run the exact numbers for a 20-year term versus a 24-year term... and then come back here trying to lecture us with math instead of just repeating some half-baked info you got from a quick phone call that’s confusing everyone who doesn't know the fine print of this loan...

Also, that 2.99% interest rate is the nominal rate... not the APR... and honestly, I have no clue under what specific conditions they'd even offer that... but don't go around saying it's impossible if you haven't actually done your homework...

I don't work for Wells Fargo, and I'm definitely not here to pitch them. I took out my mortgage there, and like I said—I know exactly why I chose them. One of the biggest reasons is so I don't end up in the mess you're in right now—dealing with interest rates creeping up and having to lose sleep over how to refinance everything...
The other reason is that I can pay it off early without getting hit by any crazy fees. Since I just came into some cash recently—and I'm expecting even more in a few years—I know I made the right call
But hey, do whatever you want... go switch your mortgage to a variable rate, and then in a year or two, you can be right back here stressing about what to do next...

And if you still need convincing, I'll happily drop my entire loan breakdown—the amount, the term, the monthly payments... whatever you want to see... then you can take those numbers to whatever bank you feel like and compare it for yourself...
When I was shopping around last year—before the Fed started hiking everything—Wells Fargo was clearly the better deal... maybe there's something slightly better out there now, but based on what you've said so far? You haven't convinced me.

redmaker382 said:Regarding that 5% fixed rate—I’m with you. No way that works according to any standard loan calculator; if that were actually possible, nobody would be bothering with traditional bank loans anymore.
The one you mentioned is definitely the worst deal since it has the longest term, but honestly, I’m looking for a solution just like that too. I’ve been over to Michelle from Goldman Sachs more times than I can count, and I’ve already run ten different scenarios along with my little savings plan, but there are still some annoying details tripping me up.
Every single calculation shows a different APR, even though I’m using the exact same savings percentage.
So, quick side question: can you actually get a tax deduction on interest for a standard mortgage, or is that perk exclusive to those specialized savings institutions?
It would be great if someone who’s actually taken out one of these loans could DM me their specific numbers. I don't want to go around complaining, but I have a feeling it’s all more or less the same thing anyway.
They have a few tricks to reel you in, but at the end of the day, it's just marketing.
Personally, I’m still sitting on the fence about whether I’ll pull the trigger with them until I am absolutely certain this is the real deal.

gaultier, look—that 4.99% fixed rate you're talking about is just the nominal rate... the effective APR (you know, the one that actually accounts for all those extra loan fees... basically what we call the real interest rate)—for my own loan, for example, it’s sitting at 5.99%.
It’d be a huge help if Spin clearly stated whether they're quoting nominal or effective rates in the first place.
Since you were actually there in person and have a mountain of paperwork, you should probably know this by now... I mean, they surely explained it to you... and obviously, those numbers are going to shift depending on how you run the math—whether you're comparing multiple contracts, holding a savings account, having just one deal, no deposit, or the repayment timeline, etc. (I'm assuming that's how you did it, anyway, since that's how I went about searching)
Same goes for the interest... it varies based on the specific loan tier too.
What other little details are tripping you up?
So, how much do you have tucked away in savings over there right now?

Ashley Barnes9 said:Hehe... you missed my point.

Michelle from Goldman Sachs (whoever she may be) calculated that for a $100,000 loan, I'd have a monthly payment of $690 over a maximum term of 24 years. But when I started looking at actual bank offers, I saw that for that same $100,000, I could pay it off in just 20 years with a $699 monthly payment. So, the conclusion was pretty straightforward. Since there's a Bank of America right near my place, I headed over there, and they gave me a very clear explanation of how this intermediate financing works. Just like redmaker382 mentioned, I need $100,000 in cash, but since I don't have any savings, the bank essentially lends me $140,000, and they charge interest on that full amount. They take that extra $40,000 and deposit it into a savings account for me; then, once that term ends, depending on the specific model, they apply that "saved" amount toward my principal to bring it back down to the original $100,000 I actually received, which is what I continue to pay off.
😁

That’s why some people wonder how you can end up with a higher monthly payment despite a lower interest rate at the savings bank, and why you'd practically have to recruit your entire extended family just to get a slightly better rate through the Democratic Party.

It's honestly pathetic.

Of course, the pitch is always that it won't cost you anything extra—yeah, right. There are all sorts of little fees for reports, processing, or mailing statements, and who knows what else. Basically, if you're recruiting six people, prepare to shell out at least an extra $33 per month.

By the way, your math doesn't quite add up because $690 x 24 years equals $198,720, so I have no idea how you reached your totals.

With the same amount at JPMorgan Chase, I'd be paying what you noted: $699 x 20 years = $167,760.

In the end, I'd pay $30,960 less at JPMorgan Chase... 😁

Then again, maybe that lady just made a mistake and miscalculated her numbers, so please, make sure to triple-check everything if you're planning to take a loan from them. 🤣

Here is a link where you can see the annuity schedules for JPMorgan Chase loans: JPMorgan Chase

And here for Chase. Chase

For the others, you'll have to do your own homework.

honestly, Ashley, what am I even going to do with you😍...you just don't get it... or better yet—you aren't getting that your math is all wrong.
I got to that Goldman Sachs figure like this (wish I could draw a diagram for you)
20 years (and yeah, I'm using the same number of years since that woman told you it was 24 years max... but you can also go with 20... see where I'm coming from?) x 12 months = 240 months, then multiply that by a $750 monthly payment and you get $180,000
And that's how I landed on that discrepancy... keeping in mind that I'm pretty sure the monthly payment at Goldman Sachs for a 20-year term is even lower than the one you found for 24 years... you follow?
And hey, maybe try asking JPMorgan Chase what their monthly payment looks like for 24 years if you're really intent on comparing them... because honestly, trying to compare loans with different terms makes absolutely zero sense.

If you ask me, she just doesn't have a clue what she's talking about—it’s not like she’s out there shilling for Goldman Sachs...
I mean, I definitely didn't get that vibe from anything she's posted, especially since she actually started this thread specifically to get some clarity and help making a decision.

Who's this agent... Michelle Foster13? 😂😂😂...I mean, come on, you can tell she hasn't got a clue half the time

Ashley Barnes9 said:I think they’ve already factored in the rate hike here. But even if you go with their most expensive option at a 6.27% APR, it’s still a better deal since the monthly payment on a 20-year term would be around $775, so the difference is negligible.

For people who have their savings sitting in Wells Fargo and are just financing the remaining balance up to the agreed value, this is definitely more cost-effective than a standard loan. However, for those who have $0.00 savings and need to cover that interim financing period, a traditional bank loan is clearly the way to go—mostly because of the exact reasons you mentioned, which these savings institutions tend to hide like a snake in the grass.

By the way, that's exactly how those predatory lenders operate; they jack up the base rate until it's three times higher than it should be. Even with the legal interest rate cap at 14%, you end up looking at a real effective rate closer to 50%...😁

Look, that’s just not true... it sounds like you don't really have a clue what you're talking about, so please, let's not spread misinformation here...

I actually had my savings with them and I pulled it all out without touching any credit first, then I took out an interim financing loan... and trust me, I know exactly why I did it that way... because it was way more PROFITABLE for me.

Ashley Barnes9 said:I’ve been following this thread because I’m looking into mortgage options myself, so I gave Wells Fargo a call directly. For a $100,000 loan over a 24-year term, they quoted me a monthly payment of $690 at an AT&T rate of 4.99%.

Meanwhile, at Bank of America, for that same amount with an AT&T rate of 5.70% on a 20-year repayment plan, the monthly payment comes out to $699.

That means you're paying it off four years sooner, which ends up saving about $33,120 in total (48 x $690 = $33,120).

You can verify these numbers on the Bank of America website; this specific loan is tied to USD for people under 40.

I got pretty much the same results over at Chase... so, there you have it... 😉

Wait, I just realized what you actually wrote here...
I mean, how can you even compare loans with different terms?!... Goldman Sachs offers up to 24 years (they told me 24 is the max, not that it *has* to be 24—it could be "only" 20), while JPMorgan Chase is at 20?! Of course, comparing them like that makes JPMorgan Chase look better than it actually is.
So, I just ran the numbers myself—assuming both loans have the exact same term, meaning we're looking at 20 years for the Goldman Sachs one too—to see what the actual difference would be.

JPMorgan Chase - 20 yrs - $699 monthly - total payout $167,760
Goldman Sachs - 20 yrs - $690 monthly - total payout $165,600
That means the Goldman Sachs loan ends up being exactly $2,160 CHEAPER. If you don't care about that kind of cash, fine, whatever.
But honestly, I'm pretty sure if I asked for a quote on the Goldman Sachs loan for 20 years, that monthly payment would drop even lower... which just proves it's the better deal.

And let's not forget—your math for JPMorgan Chase falls apart the second interest rates tick up, whereas the Goldman Sachs calculation stays solid just like it is now... and will stay that way for the next 20 years.

redmaker382 said:I’m guessing you called about that bridge loan—the one from Wells Fargo? Assuming you don't have any cash sitting around, you're looking at paying 40% more on a $100,000 loan because they end up covering the rest of those housing savings contracts for you. But honestly, let redmaker382 break it down for you; they'll explain it way better.
Here are a few of their calculations—I’m pretty sure I’ve already posted these somewhere else:
If you’ve got nothing and they bump you up to, say, $75,000, that just means they're footing the bill for the difference.
So you’re looking at a 40% down payment, which means you're essentially borrowing about $125,000. At that rate, your monthly payment hits $565 for a term of roughly 20 years. But, if you’ve got an extra $800 tucked away to throw at it? Your payment drops to $555 and you shave six months off the loan. Not a bad way to play it.

Since the banks just announced they're hiking interest rates by another full percent, I guess I'm officially broke.
He'll just weigh his options and go wherever he thinks he'll get a better deal.

Check out this interesting link.

Check out this link on how to get funding for home renovations. It’s basically a guide to navigating all those different loan options and grants available right now.

That link you dropped is ancient—it’s from October 2006—and it’s just talking about a basic mortgage at Wells Fargo, not some bridge loan...

Ashley Barnes9 said:I’ve been following this thread because I’m looking into mortgage options myself, so I gave Wells Fargo a call directly. For a $100,000 loan over a 24-year term, they quoted me a monthly payment of $690 at an AT&T rate of 4.99%.

Meanwhile, at Bank of America, for that same amount with an AT&T rate of 5.70% on a 20-year repayment plan, the monthly payment comes out to $699.

That means you're paying it off four years sooner, which ends up saving about $33,120 in total (48 x $690 = $33,120).

You can verify these numbers on the Bank of America website; this specific loan is tied to USD for people under 40.

I got pretty much the same results over at Chase... so, there you have it... 😉

Look, sorry, but trying to figure out something as messy as a home equity loan over the phone is honestly laughable—if not totally absurd...
okay, sure, we’ve dropped a ton of info here, but still...
I've spent ages hunting down loans—hitting up bank after bank... sitting down for hour-long marathons with loan officers... sometimes meeting the same people twice because if you're just staring at dry spreadsheets, it's way too easy to misread things... plus, you rarely actually get the real story from a computer screen...

Michelle Foster13 said:I have to admit, I’m still feeling pretty confused after visiting them—and I’ve actually been there twice now, once on Monday and again today. Honestly, the more I go in there, the less sense it all makes to me! 😲

...but hey, I finally made my choice. I think what really tipped the scales was the fact that they’ll give me a little extra cash upfront to help with some new windows and furniture. Other banks just aren't offering that. I guess those other places assume that since I've been working at Resolute for 20 years, I'm perfectly happy sleeping on a beach towel until my loan is paid off before I can afford anything nice 😕

Oh, and one more thing—I don't really need a deposit. I'd much rather go with a co-signer option (or maybe two if I decide to ask for a bit more to cover the renovations).

So what part isn't clicking for you now?

Angela Cox6 said:variable interest rates

And I was thinking that...
Maybe you should sleep on it—is that shaky variable rate really worth walking away from the WUST deal? Look, I’m not trying to push you toward them or anything... you know what's best for your own wallet... but since those rates can just spike out of nowhere, you might want to crunch the numbers one more time before deciding.