Back in 2006, I applied for a home equity loan to finish out my basement for my business. I was only looking for $15,000 to $20,000. Qucken loan took my app and within a few days, they said we should be able to get you the loan. I told them what I wanted, which was a loan with a fixed rate and 10 years max. They came back and told me the shortest was a 15year, but if I made extra payments, it would cut into the princable. I said fine.
Now they knew I had a guy coming out to start work on my basement and I need an answer if it was approved and when will the closing date be. The worker needed to know, because if it was going to take a few more weeks, he would have to start another project, then come back a month later to start mine. Quicken told me everything was good and gave me a closing date. I called the guy and told him the info. The guy purchased the material and dropped it off at my house.
A day before closing, Quickens called and said they had a problem, but it could be worked out. I was mad. They delayed the closing a few days, my rate went from 9% to 12.5%. Their excuse was that I was a little more of a risk, but they could get it done at 12.5%. But they also said, I would have to borrow $42,000 to pay off, other debt and they could get things going. I agreed to that! They said it will be nice to have just one payment.
I closed and when I recieved my second statement, I noticed nothing went to the principal. I called and asked why this was. They informed me my loan was an interest only loan. I tild them the terms I agreed to, with one was to have a 15 year loan. I wanted it paid off no longer than 15 years. They told me it's too late, you signed the contract and cashed the check. Maybe we can refinance you. Then they turn around and sold off the loan to a foriegn bank and a company called Select Porfolio Services handles getting the payments for them.
So now I am stuck with a loan, paying $500 a month to all interest. At the end of this 15 year loan. I will still owe $42,000.
I am very upset and hope someone will be able to help me!!!