Need some advice!

[SMikulski49]

I have purchased a new car in Januray 2008. The car was for 18,500 with a interest rate of 7.99.

Right now my balance is 11,500.

My monthly payments are 322 a month, but for the past 10 months I have been paying 520 to pay the car off faster.

Do you guys think it would be a good idea to refinance my loan and try to get a lower interest rate?

My Equifac score is 740 as of 7/2009 and it probably went up since than. I looked at my bank, BofA, and they offer refinancing interest rate as low as 4.40 thats if I would qualify for it.

Any suggestions or helpful tips??

[Anonymous]

i don't think it's worth it at this point to refinance.  mostly because you already paid a huge chunk of interest.  on a car loan first 2 years or so, most of your monthly payment goes towards interest, afterwards more goes towards principal (aka you don't have much interest left to pay); your balance will go down faster and faster from now on...

assuming it's a 60month loan, why extent another 5 years just for a lower payment.  i'd continue to make the 520 and pay it off on the original loan.

imo of course, everyone has their ideas...

[Anonymous]

if you have no problem with paying $520 a month, then continue to do so. If you are strapped for cash, and you want to use some of that money for other bills or purchases, then i would continue to pay $322 a month, dont refinance if you dont have to.

[SMikulski49]

I am fine paying the 520 a month. The loan that I took is for 72 months. This January it will be two years since I have been paying it. When I pay for the car online they do not reset my account and send me the statment for 320 every month. According to them my next payment due date is may. But I continue paying it every month anyway.

Would it be better if I called them and have them reset my account so everytime I overpay it showns on the account and I get a statment every month for the 320? or does it not make a difference?

[Anonymous]

what do you mean reset? are they not applying the extra $200 to your principal balance? and only applying the $322 to the payment, and acruing the remainder as future payments? you must state the extra payment of $200 to apply to principal. otherwise they may just hold it as future payment towards the balance.