Q. What is the interest rate on my loan?
Your rent to own contract is a lease, not a loan. Your lease allows you to cancel at any time without a penalty, return the building, and owe nothing further. A loan is a commitment to pay the entire amount, since your rental contract is simply a month by month agreement it can be ended any time without further obligation.
Q. My payment history with you has been very good. Will you help me improve my credit by reporting that?
We greatly appreciate your excellent payment history, but unfortunately we do not report to any credit agencies. Whether the payment history is good or bad, our rental agreements are not legally defined as a credit transaction, therefore your transactions with EZ Ownership Concepts, LLC will never affect your credit score whether good or bad.
Q. If I send extra money with my payment, will it applied to the principal?
In a true lease there is no principal. You can send extra money if you desire, we will apply it to your rent out ahead, and those rental payments do include our rental charges. The best thing for you is to make your monthly rental payment on time each month, save extra money, and when the payoff amount is lower, you can make a single payment to purchase the building. This payoff in one lump sum includes no rental charges or fees whatsoever. It is simply the remaining balance of the cash price, plus your state’s required sales tax. There is no penalty for early payoff, and we recommend you take advantage of the early payoff option.
Q. Last month my payoff was $400. I sent a payment of $100, but my new payoff is still almost $350. Why is that?
First, we are required to collect sales tax, so that has to be deducted from your $100 payment. Secondly, there are rental charges, for each month’s rent, and after those are deducted, the balance is subtracted from the cash payoff amount. The payoff amount represents a savings of approximately 40% (depending on the length of contract you choose) instead of paying rent for the remaining months of the contract. Also, any late charges will have further reduced the amount being applied to the payoff.
Q. I love my new barn, but it’s too small. Can I trade it in for a larger one?
You have the right to end your lease and return your current building. Whether you are eligible for a discount on a larger barn will be determined on a case by case basis. We have to deduct our hauling and delivery costs, but if your history on the current account is good, we may offer you a discount on a larger building. Call us when you’re ready to upgrade, and we’ll review your account and make you an offer.