My unfortunate experience with 21st Mortgage Corpo...

My unfortunate experience with 21st Mortgage Corporation reminded me why we suffered through 2008 financial crises. Greedy mortgage companies like Fannie Mae and Freddie Mac played a major role in ruining so many lives in those days and this company, in my experience, is no better than them.

I would hope that, especially during these challenging times in our lives, businesses would be more decent and honest than ever and they would not put their potential customers in a financially very difficult situation.

I am 57 years old and moved to a new city for a job. I explored different options to find a place to live and decided that buying an affordable manufactured home in a 55+ age community would be the best option for me.

I found a home for $54,5K and submitted a loan application to 21st Mortgage as recommended by the selling realtor and I indicated that I would put $12K for down-payment (22%). They were very fast approving my application which was nice, but then, I was so disappointed and shocked when I saw the figures on their approval notice.

My credit score was 813 and I ve worked so hard to maintain that near perfect credit score. The home was in an excellent condition but it was built in 1978 so I was expecting that their interest rate would be a little higher but still on the low side because a credit score is not just a number.

Their approval notice included 9.15% fixed interest rate, 9.744% APR, and 4.75% origination costs with a monthly payment of $525 (including small amount of taxes and insurance payments) for 23 years, which would make it more than three times of my original $42,5K loan amount at the end (nearly $145K Total).

Loan: $42,5K = Payback: $145K (including small taxes and insurance). How can you justify that for someone with an exceptional credit history?

My hope was, with a reasonable interest rate, I would be able the pay it back in less than 5 years but they made it impossible.

I declined their approved offer but trusting them in running my credit check cost me 4 points drop on my credit score and I regret it.

I understand and respect that they are in the business of making money but it should never be so much more than what they deserve. Otherwise, we all end up living through another 2008 financial meltdown.