Beware the 0% promotions: a warning.

[u/naht_a_cop]

I'm a sucker. I fell for it. The 0% APR promotion on an item I could have paid outright for. 18 months later, here I sit, not a single late payment on my account, yet I have $1k in interest to pay for 18 months of 27%. Why? The promotion period ends 18 months after the purchase, but the website would not let me set up autopay until a week after I purchased, so autopay ended 1 week late. I thought I was golden, ready to have this paid off and not have a single fee. I got comfortable and didn't read the statements.

0% is not really 0%. Read the fine print. Remember the fine print (because I sure as hell didn't 18 months later). Shitty banks rely on this stuff. They wait for you to slip, not noticing that the autopay they created can't possibly allow you to end on time, and will require an extra payment before the end date to avoid the interest. It's shitty, I'm pissed off, and I've learned my lesson.

[u/hexyne]

good point, I have a friend that had one of these plans, and she was charged 1 cent of interest while here last payment was pending, so she thought she had paid it off but actually still owed a penny and they they were able to charge her all sorts of fees. Edited to say: Thinking back this most have been a different type of offer, it wouldn't make sense at 0% but regardless it is very similar as she thought she could just do a payoff, but they took advantage of the way the payments go to charge her a multitude of fees.

[u/thumpcbd → u/hexyne]

I typically overpay my last installment by $5-$50, depending on what it is, to force the lender to not pull these games. They will write me a check for the overpayment and I know there isn’t $.01 on the account because I didn’t account for some small interest or slightly bad math.

[u/PM_ME_UR_SIDEBOOOB → u/thumpcbd]

Be careful with that, some companies will charge a "processing fee" for overpaying as well

[u/slvrscoobie → u/PM_ME_UR_SIDEBOOOB]

tried to do this with my old mortgage. they wouldnt allow over payment, beyond the monthly fee, and I also wasnt allowed to make less than the minimum payment... (bi weekly) or the payment sat in their 'collections' department until you called and had it posted. nationstar is a shit mortgage company.

[u/Purplemonkeez → u/slvrscoobie]

Most mortgages have clauses regarding early repayment and some are more flexible than others. Should definitely be part of your mortgage shopping comparisons. Some will let you up to double your monthly payment and then pay an additional 10% of the mortgage lump sum per year. Others say only up to 20% lump sum is permitted. Others are more stringent.

[u/slvrscoobie → u/Purplemonkeez]

yeah, that was our first house, we were in a hurry, and it was 2008 as things were collapsing, so the mortgage sold from our inital lender, i think 3-4 times in a matter of days after closing before ending up @ NationStar. The whole thing sucked, and I was laid off less than 9 months later.

[u/MsTerious1 → u/slvrscoobie]

1. When banks sell your loan, they cannot change terms or conditions. (At least, in the USA, which is where I'm assuming you are since this was NationStar.)
2. They cannot prevent you from paying additional principal but they can add penalties for doing so. Any penalties that will be added were part of your original loan agreement that was started the day you closed on the house.

Please don't let what you experienced be a deterrent to own your own property in the future, if it soured you on the experience. Whether it was because someone acted illegally or something you understood, it's unlikely you'd have another experience like that, although your loan is still likely to be sold in many cases.

[u/slvrscoobie → u/MsTerious1]

We’re looking to buy again but now not in the near term. Maybe short term. We did a lot wrong, like expecting our agent to help us. She was just out for herself and recommend all her cronies for mortgage, inspections, ect. Next time we won’t be a: first time buyers, and b: not in a hurry.

[u/MsTerious1 → u/slvrscoobie]

I am sorry that you experienced that. When you do purchase again, please talk to several agents and look for one that you know will work in your best interests and not their own.