Too good to be true?

[Novcruisin]

We are in the final stages of pool planning and now comes the non-fun part...finalizing how we will be paying for it!

We are in Texas and see that Lyon Financial apparently has terms for 3.99% for up to 20 years, with no prepayment penalty...seems to good to be true

I know one caveat is you must have good credit, which is fine for us as we both have 760+ scores. I'm wondering, is there any other "fine print" anyone knows about?

We don't want to bother having them "bing" our credit for an application unless it is worth it.

Thanks in advance for any advice!

 

[jagger2005]

Call them and get all the specifics. Most importantly ask about loan origination fee. I looked at them, but there was something that had me run far far away...and I bet it was the origination fee.

 

[jagger2005]

The red flag might have been the interest rate. That 3.99 may be for 2-5 year note and it was substantially higher for the 20 year note. I think you will find better offers from local credit unions or banks. I ended up doing a refi and took equity out of the house - just remember there are consequences you need to understand when you take out a home equity loan in TX. If you have a mortgage loan and then take out a home equity loan, you are forever only able to do home equity loans on that property. You can only take one home equity loan per year and you can never have more than one home equity loan at a time. So if you want to refi your original mortgage, you have refi as a home equity (called Texas equity) and you have to absorb the mortgage and home equity into one mortgage.

 

[Divin Dave]

Dont have any personal experience with Lyon. But if that doesnt pan out as good as it sounds, you might look at Lightstream.
Same type of deal. Excellent credit, simple interest,low rate if you do automatic payment etc. I used used lightstream and paid off early without penalty. No hiccups at all and no fine print. I was a bit surprised how easy and smooth it went.

 

[Novcruisin]

Thanks everyone for your advice!