We recently paid off a home equity loan through Washington Mutual. I've thought highly of WAMU during the past several years we've had an account with them. But then my wife told me something that made me think, "hmm, they just don't bother to disclose everything do they?"
First, when we took our home equity loan about 3 years ago we got a rate of just under 5% percent. I remember the loan officer telling me it was for 20 years. He didn't mention, and I didn't both reading the fine print, that it was an adjustable. It just never occurred to me. We found out several months ago when we discovered the rate had gone up to 8 1/4%.
But then we paid it off last month and we got a statement for 35 cents. No problem. Finally, my wife called to see if they could erase the 35 cents and they said, "no, we still owed $51.00."
They explained the payment shown, which seems like the balance, is actually only the interest.
Fortunately, we had been paying well ahead so we were always bringing down the principal. Sneaky. Why don't they make it really plain and clear that the amount shown is only the interest?
Be aware! If you take out an equity loan through your bank be certain you know how much is the interest and how much is the principal. The statement may not clearly tell you.
Hey, Washington Mutual! I'm disappointed in you!
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