I was offered to refinance through loan depot and the loan officer (sales rep) repeatedly lied about the benefits of a refinance.I told him that we would need to refinance in 9 months and asked him if we paid no money out of pocket if we would have a smaller principal remaining at that time then if we just stayed on our current loan.
He kept assuring me that he ran the numbers and that we would be saving about $4,000 during that time. This didn't make sense to me because he wanted to add about $3,000 to our mortgage and the difference in interest rates couldn't possibly account for that much in a full year much less 9 months. I teach personal finance so I ran the numbers myself and his loan would've ended up costing me more than it saved, but I wasted a lot of time finding documents to get this loan and many people less financially literate than me would accept this sales person's analysis.
It seems criminal to blatantly lie about these things as an expert in a field.I hope that no one falls for this and remember that their commissions require people getting loans with them and doesn't require this to be any way beneficial to the person getting the loan.
Review about: Loan Depot Loan Refinance.
Reason of review: Not as described.
Monetary Loss: $1000.
Preferred solution: Deliver product or service ordered.
I didn't like: Lied about their benefits.