Primerica Smart Loan

The (Anything but) SMART LOAN

Recent Solution: (October 2008)
SMART Loan Proposal
$212,685 (Includes over $5,600 in fees)
Rate: 7.15%
Bi-weekly payment: $718.25
Proposed payoff: 22 year, 4 months

Recent Solution:
This equals $1556.21/month
Bi-weekly payment: $718.25
($718.25 * 26 payments year / 12 months)

Recent Solution:
$1556.21/month
Proposed payoff: 22 years, 4 months

Let’s see what else the client could do…

How about a 20 year fixed mortgage???

In other words, the client walks into any bank refinances the same amount on a
20 year fixed mortgage ….

BETTER Solution:
20 Year Fixed mortgage, same loan amount
(Assuming the bank charged the same ridiculous fees)
Loan: $212,685
Rate: 6% (Source: http://mortgage-x.com/x/ratesweekly.asp )
Payment:$1523.49
Payoff: 20 years

Which is better?
20 Year Fixed mortgage: $1523.49
22 years, 4 months
SMART Loan: $1556.21

Which is better?
20 Year Fixed mortgage: $1523.49
22 year, 4 months
SMART Loan: $1556.21
Avoid the SMART loan and finish paying
28 months sooner and save $33/month
But wait, there’s more!!!

Which is better?
What if we wanted to compare monthly payments using the SAME 268 month
as term on the SMART loan?

If we asked the bank to amortize the loan over the same
268 months the SMART loan was proposed over, the payment would drop to:
$1442

Which is better?
$1442 or $1556
A Savings over the SMART loan of:
$114/month!!!

What’s so SMART about paying more money for a longer period of time?

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Primerica Smart Loan

by 1dra on Oct 19, 2009

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Primerica Smart Loan — Presentation Transcript