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Author Topic: Experiences with financing--- Mountain America Credit Union?  (Read 361 times)

kkterry

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Experiences with financing--- Mountain America Credit Union?
« on: February 07, 2018, 10:43:56 AM »
I couldn't find any information on this, if there is some somewhere I would love to be pointed in the right direction.  We are looking at a couple of financing options and the one with the lowest rate for us is through Mountain America Credit Union.  However, it has a balloon payment that the dealer says people simply refinance with Mountain America at the time it is due and they've never heard any negative feedback.  I am wondering if anyone here has used Mountain America Federal Credit Union (with or without a balloon payment)?  What was your experience with them?

UTTransplant

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Re: Experiences with financing--- Mountain America Credit Union?
« Reply #1 on: February 07, 2018, 01:48:10 PM »
We used them for our trailer loan a few years back. No balloon though. Easy process with no surprises. I would be worried about a balloon in a period of increasing rates, but you probably know that.
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Gary RV_Wizard

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Re: Experiences with financing--- Mountain America Credit Union?
« Reply #2 on: February 07, 2018, 02:18:36 PM »
Balloon payments are primarily for specialized borrowing situations, but some dealers or buyers use them because it makes the monthly payments low [until the balloon comes due!).  Usually a poor choice for buyers, especially if financing a rapidly depreciating asset like an RV. You end up with a big payment due and insufficient collateral for a new loan on a used RV.  If that kind of loan is the only way to make the payments affordable, you probably ought not to be buying.  But that's your call...

What sort of questions do you have about Mountain America?  You probably don't need to worry about them sending out a leg breaker if you miss a payment, but any lender is going to start re-po if you get too far behind.   Other than that, it's all about interest rates, length of term, and requirements for upfront or back-end payments.  You should compare the terms of the loan (interest rate, time period, etc.) with other lenders and choose the one that is least expensive for your needs over the length of the loan. Not just monthly payments.
Gary
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Gary Brinck
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av8tor

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Re: Experiences with financing--- Mountain America Credit Union?
« Reply #3 on: February 07, 2018, 08:42:49 PM »
That is who the dealer we bought from used for ours.  I didn't really care for the balloon idea, but it's not due for 20 years, be dead by then, I'll let the kids/grandkids worry about it.  It was the lowest interest rate/payment I could find, so there is that.  Easy people to deal with, no issues of any kind, have had it about two years now, no problem. 
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Gary RV_Wizard

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Re: Experiences with financing--- Mountain America Credit Union?
« Reply #4 on: February 08, 2018, 10:05:46 AM »
The balloon payment at the end makes the monthly payment lower because you aren't paying much (if anything) toward the principle. The downside is that you pay interest on a higher amount of money for the full time period of the loan.  In my opinion, a 20 year RV loan with a balloon payment is a financial disaster. The best you can hope for is to die before the RV does (take good care of it!!) and let the lender collect from your estate if he can.

Make sure there is no clause in the loan contract that let's them unilaterally demand full repayment before the end of the term, cause you would be in deep doo-doo if you got a letter in the mail saying you have 30 days to pay skatey-eight thousand dollars. Especially when the RV is worth half that. They should only be able to require immediate full payment if you default on the loan.
Gary
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KandT

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Re: Experiences with financing--- Mountain America Credit Union?
« Reply #5 on: February 08, 2018, 05:22:25 PM »
A balloon payment on an RV is little like financing dinner.

In 24 hours it will be a pile of **** but you still owe money for it.  You go to refinance it but you have nothing but this pile of **** for collateral.  They say you need more collateral or all the money.  Now you have to look at another place you can find collateral like a home.  You now have yourself in a situation where you are borrowing against a home to pay for a pile of **** that was a great dinner years ago.

"People SIMPLY refinance" says the dealer.  I would want to read every little spec of that paperwork!
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Utclmjmpr

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Re: Experiences with financing--- Mountain America Credit Union?
« Reply #6 on: February 09, 2018, 12:16:42 AM »
 I have been a M/A customer for over twenty years with zero problems ,,,,other than their demand for payment.>>>D
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Gary RV_Wizard

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Re: Experiences with financing--- Mountain America Credit Union?
« Reply #7 on: February 09, 2018, 08:16:32 AM »
Quote
I have been a M/A customer for over twenty years with zero problems ,,,,other than their demand for payment.

Nor would I expect any - they are a big outfit and a chartered financial institution, not a neighborhood loan shark.  The potential problem is the balloon type of loan, not the lender.  The 12 year fixed RV loan from MACU is a much better choice except for one thing: higher monthly payments.  Most lenders don't even offer a long term balloon loan for RVs, because they know it is a trap for buyers who get seduced by the attractive payments.

There are plenty of situations where a balloon loan makes good sense, but an RV isn't one of them [my opinion, of course].
Gary
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captaindomon

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Re: Experiences with financing--- Mountain America Credit Union?
« Reply #8 on: February 09, 2018, 09:32:50 AM »
We used MACU and as a company they seem awesome. Easy to work with. They have tons of different financing options. Just call MACU directly and talk to a loan agent, and ask about options without a balloon payment.

 

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