Quote:
Originally Posted by Vash
lol Those scared. Can we keep it on technical topic and avoid insults? People ask advice on a public forum they expect some perspectives and some of us just happen to keep tight books. We try to help look out for people man it's not negative. It's consumer activism, thrift and security.
I could care less about emotion it's a car and a loan (till the person get's the car then it's love).
The ballon is just a bad idea and it's a poor lending practice in todays economy.
That's just my opinion.
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I wasnt insulting anyone. I didnt quote anyone's post and call them scared. I put scared in quotations because I couldnt think of a better word at that particular moment.
I believe my post was offering a perspective and trying to inform more about the purpose of the loan and to shed some light on rumors and hearsay that some may have heard.
A balloon loan WOULD be a poor lending practice, but this isnt a balloon loan. As I stated before, the Pen Fed payment saver loan is not a "Balloon" loan. The interest rate never changes. There is nothing shiesty or underhanded. This is just a car loan. If you dont want to put a huge down payment at purchase time, but still want 400 a month payments at a 60 month term. Then it's a great alternative.
The only negative with this type of loan is that you run a high likelihood of being upside down on your car loan should you be in an accident and your car be totaled. But Pen Fed offers free GAP insurance with the loan. So that's covered too.
Not trying to be argumentative. Just stating the facts.
Chief, I went with a payment saver loan. If you have cash in your savings account and want to keep it there, then it's a great loan!