HELP Refinance Question!

[Anonymous]

Hello, 

Just wondering what my best option for refianincing is. I got some offers from Capital one and not sure which one to choose. Info below. 

Currently with Toyota Financial Purchased on 2-2018. 72months 

monthly - $546.72 apr 16.84% matuarity date 6-18-2024. 

Capital one offers. 

monthly - $507.00 apr 10.96% 53 months 

monthly - 617.00 apr 10.45% 41 months 

monthly - $555.00 apr 10.75% 47months

[Anonymous]

It depends on what you can afford. The three scenarios you listed have APRs that get smaller as the term of the loan shortens. I would take the shortest term you can comfortably make the payment on, as it'll save you the most money in terms of interest.

[calyx]

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@Anonymous wrote:

Capital one offers. 

monthly - $507.00 apr 10.96% 53 months  - 26,871

monthly - 617.00 apr 10.45% 41 months -  25,297

monthly - $555.00 apr 10.75% 47months - 26,085

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On its face, the 41 month one is cheapest at the lowest APR, and by calculating it out, you can see how much you'll save.

If it's a simple interest loan (usually is) and they allow principal only payments (no early payment penalty), you could also pay extra towards whatever loan you choose to reduce the interest payment.

ImTheDevil has a good point, though - what can you reasonably afford?   If paying an extra $100/month for the next 3-4 years isn't feasible, go with the longer term/lower payment loan.    Or if you're not sure, you can go with the longer term loan to keep your obligation down, but pay extra towards principal if it turns out you can afford the extra and still knock down the total interest by the end of the loan.

[Anonymous]

It depends on what you’re trying to do. If you’re trying to reduce overall payment for the car, as @calyx pointed out, the 41 month term will give the best overall. However, if you’re looking to reduce your monthly payments, the 53 month term is best option