Auto loan

[Anonymous]

last year in June of 2013 I applied for a auto loan, the truck was 21,200 and I had 8k down, the intrest rate is 16.5, after a few months of making payments I went in and paid 7k more down on the prinicple and have been making monthly payments on time, the rest of the money is in the savings account comming out with auto pay. Just wondering did I mess up by paying the loan down? There is no penalty for paying off early. I just didnt want to be paying all that intrest from the loan.

[pizzadude]

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@Anonymous wrote:

last year in June of 2013 I applied for a auto loan, the truck was 21,200 and I had 8k down, the intrest rate is 16.5, after a few months of making payments I went in and paid 7k more down on the prinicple and have been making monthly payments on time, the rest of the money is in the savings account comming out with auto pay. Just wondering did I mess up by paying the loan down? There is no penalty for paying off early. I just didnt want to be paying all that intrest from the loan.

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Paying down the principle was a good move on your part since the interest rate on your loan is so high.   Depending on how much interest you still have to pay, it may be a good idea to refinance to a better rate now.

[Anonymous]

they said to refinance i would have to raise the loan by 3k. i guess i will continue to let the payments come out of the savings account until its payed off.

[pizzadude]

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@Anonymous wrote:

they said to refinance i would have to raise the loan by 3k. i guess i will continue to let the payments come out of the savings account until its payed off.

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I'm not sure that I understand ~ are you saying that you're 3K underwater on your loan right now?

[Anonymous]

no, sorry, to refinance me they would have to loan me 3k more. i didnt really understand that so i said, no thanks.

[pizzadude]

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@Anonymous wrote:

no, sorry, to refinance me they would have to loan me 3k more. i didnt really understand that so i said, no thanks.

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Who did you ask about the refi, is it the company that's currently financing the loan?    Have you looked into other banks or CUs to refinance?

What were the terms of your loan?

[Anonymous]

the loan is thru the credit union in my city, i asked they guy at the desk who setup my auto pay. maybe I didnt ask the right person, I dont know what you mean by terms of the loan. sorry still learning all this stuff.

[pizzadude]

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@Anonymous wrote:

the loan is thru the credit union in my city, i asked they guy at the desk who setup my auto pay. maybe I didnt ask the right person, I dont know what you mean by terms of the loan. sorry still learning all this stuff.

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I was asking the interest rate, number of months, amount financed, and if the loan was some type of  non~standard loan.    You should talk with a loan officer at the CU, they can tell you if it's feasible.   However many banks / CUs won't refi their own loans.

Assuming that it's a typical auto loan, and that value of the car exceeds the amount you currently owe, then you'd should be able to refinance to a better interest rate.   You should try shopping around.

[Anonymous]

as far as i know it is 16.5% intrest rate and a 4 year loan. but like i said its almost paid off now about 3k more to go and all the money to pay it off is comming out of a savings account i have setup at the CU.

[Bblack31]

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@Anonymous wrote:

as far as i know it is 16.5% intrest rate and a 4 year loan. but like i said its almost paid off now about 3k more to go and all the money to pay it off is comming out of a savings account i have setup at the CU.

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If you have the money then just pay it off.  Save the interest that you would pay.  It will still be on your credit report for 10 years or so.