Honda dealer tried to charge me 10% interest on a car loan. I told them that I
should get a better rate. They bs me with bad credit score. I told them I was pre
approved for a car loan with much better rate from a bank. They then changed their
tune and offered me a better rate then the bank. The finance guy bs me for 2 hours.
I didn't tell him that I used to work in loan industry.

The finance guy from Mazda tried to con me. During negotiation, he agreed to the
rate I asked. He went to get approval from his boss. He came back with a payment,
not rate. I confronted him that the payments were much higher than the rate we
agreed. He walked away and came back with the right payments.

Car loans are very dirty. Two of my co-worker recently get bad deals. They don't
care after my friend confronted them with the bad deals they got. Those victims
won't know that that they got raped if my friend didn't tell them. The fed seems to
do little about car loans.

I used to work in a wholesales home mortgage company. We underwrote home loans. We
were the lender. The minority get hit hard with points from the brokers. The
processing department turned away loan application that had too much points.
Basically, we returned applications that clearly raped the applicants.

In the underwriting department, the minority get excessive special treatments. It
was grossly reverse prejudice there, really sickening to me. If you were a minority
and your loan application denied, the application had to go through 2 more
underwriting to try to approve the loan. If you were white, you only got 1 chance.

Here are the pieces about mortgage that you should know.

1. Points are percents of your loan. 1 point = 1% of you loan.

2. Brokers charge you points or application fee for your application. They send your
loan application to lenders. They get to choose whom your lender be. In a sense,
they'll give you their best deal, not your best deal.

3. You pay for all fees.

4. Brokers will pay your fees if and only if they get special deals from the lender.
Those loans where you don't pay any fee will end up costing you more in interest.
Brokers get a fat commission from those deals.

5. The higher the interest rate on your loan, the higher the points the lender give
the brokers.

6. Brokers get points from you and your lender. Don't be fooled when they say they
do you a favor.

7. Your credit score qualify you for a certain rate. There used to be 2 tiers. The
really high score qualify for the lowest rate. The rest get the lower rate. Few
people qualify for top tier rate.

8. Direct loan application to a lender get you decent rate, better than average
brokers. The best rate is from a dedicated broker, hard to come by.

9. The best deal you get is what your broker offer you, not the lender. Your chance
of getting a best deal is slim.




Caroline wrote:

> As far as targeting minorities: This comes up with home loans, too. I don't
> think it's entirely clear that minorities are paying higher rates because of
> their skin color or because they simply do have lower credit worthiness, based
> on income, past credit history, etc.