THE SCENARIO
I (or someone with a name that's pretty close to mine) got a refinance offer this week, this time from Piper Funding. They're offering to do a debt consolidation loan because they think I have $30,500 in credit card debt at 19.90% interest. They're as wrong about that as they are about how to spell my name, but I thought it'd be interesting to figure out one of the details that they didn't mention in their offer.
They want to give me a loan for $40,500 at 3.98% interest, with a payment of $164 per month. I don't need to consolidate any debt, but I might be interested in borrowing money at 4% because I think I can probably make more than 4% with it. Regardless of whether or not I want to borrow the money, it's important for me to understand the terms of the loan.
The question: If I were to take them up on t...
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