My lender wants me to borrow more than i need and just pay back what i dont use. Is that a good thing?

Answers:1   |   LastUpdateAt:2012-10-02 20:23:02  

Question
Vanessa
Asked at 2012-09-18 03:42:06
He wanted to borrow 20,000 for a project of home improvement , but my lender wants to get 120k and just use the 20k and 100k pay instantly . My question is , how will this affect reimbursement ? I'm probably going to pay this off in 3-5 years , but the loan term is 10 years . He said there is no prepayment penalty . MedlinePlus MedlinePlus Sounds kindof suspect . Need an idea
Answer1English as my second languageAnswered at 2012-10-02 17:19:42
The amount of your monthly payment would be 6 times higher. Even after returning the lump sum of $ 100,000 again, your monthly payment would still original 6 times the highest amount , which means it could default. ( and / or could be lying about any prepayment penalty ) . MedlinePlus MedlinePlus If you want and need 20K , stick with only 20K loans . - And if you want to pay more than the minimum payment , do so on their own terms , not because of this according to Fish .
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