Re: Pay off majority of auto loan?..
07-31-2009 07:31 PM
That is incorrect...
If you get a loan for $8k and are FINANCING 8k, you will get a payment on that 8k that is not changed depending on how much you pay off.
So, for arguements sake, lets say your payment would be $200/month initially on 8k.
1 month later, you pay off 5k of your loan, leaving 3k.
You will still pay the 200/month on the remaining balance, allowing you to pay it off early, but it will not change monthly payment unless you refinance - but I find it hard to think that a financial institution would refinance for 2-3k..
Transunion: 775 (FICO) -- Equifax: 814 (FICO) -- Experian: 806 (FICO - from CU Loan Officer)
Wohoo! Happy 1st BDay to 2 accounts this month!!
07/09/08 - Before I started reading these forums...
Transunion: 670 --Equifax: 698 -- Experian: 685