Monthy payment decreases?

[Anonymous]

Banks like Wachovia have to make money in a couple of ways

in order to make up for past losses:

--- They need to stay away from subprime products altogether and

focus on prime mortgage loans only.

--- They need to generate cash flow in other areas like credit cards,

personal loans, lines of credit, auto loans, boat loans, etc. 

As their situation applies to auto loans, if there's no prepayment penalty

Wachovia has to give you the opportunity to pay it off if you so desire.

But this doesn't mean they have to go out of their way to make it convenient

for you i.e. let you make principal only payments online or pay it off online.

That's the point I was trying to make.Sorry if I was unclear.

Enjoy the evening!

CanDo

"The right attitude is everything"

[Anonymous]

Extra payments on car loans go one of two ways....

A) The Extra payments lower you principal amount while the fixed monthly amount stays the same. Also, the extra amount drops off the daily amount calculated against the APR in one lump sum.

or

B) The Extra payments lower your principal amount, but it affects the monthly payment. This lump sum gets prorated into your monthly interest, thus you pay a bit more, but not much.

My current auto loan is set up so that Principal Only payments go to a different address. If my car note is $400 and I send $800 to the regular address it changes the next due date to skip a month.....If I were to continue to do it this way still making payments each month the principal would go down just as quickly had I sent the separate $400 to the other address...

Option B simply gets the person holding the note to say hey I don't owe anything this month so I should just buy something else with the money....thus getting a person to forget that their ultimate goal was to pay down the loan faster.

My first two car notes were set up like A, but this current one I have with NMAC is set up as B.