Posted by Mike Goodey on 3/8/13 10:29pm
Msg #460176

Have to wonder

I have to wonder, how does cashcall.com make much money on a 10 year loan...no cost at 2.5%? The interest made on a $130,000 loan is less that 19,000 if paid every month and no prepayment for the entire 10 years...that's not much! If they sell the loan soon after closing, how does the new lender make any dough? Just a thought.

Reply by Bee_CA on 3/9/13 11:52am
Msg #460247

I wonder how many people actually qualify for that rate and term. I think it's an advertising ploy to get people to call in and then say "Oh, well, you don't qualify for THAT rate/term, but we can do a higher rate/term/fees loan for you...." Maybe I'm a cynic.

JMHO

Reply by sueharke on 3/9/13 1:29pm
Msg #460264

Cash Call also has a minimum loan amount of $100k. If you loan is less than that, the only option is to take a loan for $100k, pay back the principal when the funds are received ASAP and keep the amount of loan you want to pay off. This was my dilemma, so I went to a no-fee with a credit union for a 10 year loan for a lower amount. The interest rates for both Cash Call and the credit union were really close.

Reply by Virginia/PA on 3/9/13 3:34pm
Msg #460293

take 19000 divided by 120 payments = 158.33 and multiply by 100000 (guestimated loan volume). The answer is $15,833.00. If I lived frugaly I could live on that.