Why a Primerica Smart Loan?
If the reps KNOW it’s a MUCH worse deal than getting a conventional mortgage, why do they lie to their friends and family and represent it as a fantastic loan?
The simple interest feature means nothing when the loan has a higher interest rate. In fact, a Primerica SMART loan that starts as 30 years that is scheduled to be paid off in 22 years through bi-weekly payments carries:
-A higher Monthly payment
-More than Double the closing costs
-Worse reduction of principal on an amortization schedule
when compared to a excellent ancient 20 year mortgage. So, you’re done in 20 years instead of 21 or 22, you have a lower monthly payment, and it costs you a lot less to get.
Also, the SMART loan has a HUGE pre-payment penalty which the conventional won’t.
So, if you can’t PROVE my assertions incorrect, why do you sell it? Don’t use canned PFS quotes, answer with FACTS and tell me where you’re getting them.
"If I recall, you only been with Primerica for 6 months and then quit? "
Some of us are quicker learners than others
"You seem to reckon the SMART loan is a mortgage, but its really a debt consolidation loan"
LOL….A mortgage is a transfer of debt to a lender as security for a loan. Is it a loan or a mortgage or the same? By the way, on your SMART loan solution, it has a check box for 1st or 2nd mortgage. Silly!
"It combines all your debt into one monthly payment, thus lowering your monthly payment"
Same as a conventional mortgage.
"Do you even know the difference between a simple interest vs schedule interest?"
I certainly do. Again, the high interest rate makes this feature inferior to ANY loan of the same duration. If you can’t know this premise, hang up your license.
"It is most effective when it is paid bi-weekly."
Really, most effective to pay daily. 
"I’ve done over 100 SMART loans"
I’ve done over 1,000 mortgages, & know how to compare total payments
Well, as usual, as soon as you start mentioning FACTS, the Primericans run like cockroaches when you turn on the lights.
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Tags: 20 year mortgage, 22 years, amortization, amortization schedule, amp, assertions, conventional mortgage, debt consolidation loan, duration, fixed rate private student loan consolidation, friends and family, high interest rate, home equity loan lowest rate, interest feature, learners, loan solution, mortgages, pfs, premise, primerica, simple interest, smart loan
Primerica hires people who don’t know anything then train them to sell. But first they give a list of family and friends for the company to victimize. Their trainer does the actual victimizing but then they get promoted and get the next list.
Primerica mortgages are some of the worst mortgages on the market. Period. I feel terrible for anyone who has one.
If I recall, you only been with Primerica for 6 months and then quit? That doesn’t give lots of credibility to someone who thinks they know everything about Primerica and its products.
"If the reps KNOW it’s a MUCH worse deal than getting a conventional mortgage" You seem to reckon the SMART loan is a mortgage, but its really a debt consolidation loan. It combines all your debt into one monthly payment, thus lowering your monthly payment. If you don’t want some of your debt to be included with your mortgage (b/c maybe someone else is paying for it), you have the option to take them out of the debt elimination plot. I’m not sure what’s your thinking is, but it seems to me that if people want to get a mortgage, a 20 year mortgage is way to go. I really agree with that, but as I mention before, the SMART loan is not a mortgage.
"The simple interest feature means nothing when the loan has a higher interest rate" Do you even know the difference between a simple interest vs schedule interest? A simple interest is where interest is calculated daily and when payment is received, a new billing cycle starts. With simple interest, more of the payment is applied toward principal over time. It is most effective when it is paid bi-weekly. With schedule interest, its calculated monthly and whether you pay your bill on time or a small bit late, it doesn’t change the already schedule payments set by the bank.
"In fact, a Primerica SMART loan that starts as 30 years that is scheduled to be paid off in 22 years through bi-weekly payments carries" The length of the loan is not a 30 year loan. Its a customize length that is base on the number of years left on the current mortgage. For example, if you have 25 years left to pay on your mortgage, then the term of the SMART loan is 25 years.
"More than Double the closing costs" As for closing costs, I usually find that the loan has lower closing costs than the original mortgage. Why? It has no excess fees or unknown fees that banks typically get away with. But you have to compare the Truth in Lending statement.
If its the worse reduction of principal, why is that on the amortization schedule of the SMART loan shows that more of the payment goes toward principal than a traditional loan? The reason is that traditional banks applies 0% (interest only loans) to 5% toward principal. In the SMART loan, 5%-10% is applied toward principal.
The prepayment penalty only applies during the first 2-3 years of the loan.
The bottom line, the SMART loan is a plot to get rid of all your current debts. The average time my client pays on their debt is between 15-22 years. Why? All of them have a 30 year mortgage (whether its fixed interest or an adjustable rate) There’s a few extreme cases, where the client will get out of debt in 7-10 years.
The SMART loan can consolidate a 20 year mortgage as well. But I haven’t met a client that has a 20 year mortgage yet. I reckon its because banks rather have people pay 30 years worth of interest than 20 years.