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Loan Maturity Date question

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Loan Maturity Date question

Hello! I've been reading lots of info to try to find an answer to my question, but some of the info is very technical, and I'm not a friend of maths haha

 

So I got an auto loan in Dec. 2015 for a 2014 Nissan Altima. Lender is Westlake Financial Services. I did not have score at all, I came to the US on March 2015 and obtained my first CC on Nov. 2015.

 

Loan was at 20.99% on 60 months, $16500 financed on a $450 monthly pay.

 

I've requested over time two payments skip (financial hardship), so they move the maturity date from Dec. 2020 to Feb. 2021. I also requered a change of the due date from the 17th to the 25th.

 

With all this info, should I suppose that when the loan maturity date came I will not owe anything more? I have never missed a payment. About 5 payments were made between two to five days late, but never missed.

 

I've been reading that the loan works by paying interest first and then the principal, so should I expect my payments from now until the end to be applied mainly to the principal? My payoff is around $10k, and having 24 months at $450 montly it should be $10800.

 

Sorry the long post, any help is appreciated!

Main Cards:

Store Cards:

Current Scores 12/18


Gardening until Jan. 2020!
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Frequent Contributor

Re: Loan Maturity Date question


@TakatoCL wrote:

...

I've been reading that the loan works by paying interest first and then the principal, so should I expect my payments from now until the end to be applied mainly to the principal?


Most loans would allow for interest to be continually calculated, so you will be making payments against interest the entire time, especially at 20.99%APR.  It is actually being calculated at a monthly or daily rate most likely, with the compound equivalent being the annual rate they quoted you (0.0522% daily interest puts you around 20.9% annual).  

 

With 3 years of payment history compared to the zero you had at the time of purchase, I would be surprised if you couldn't refinance that with a much better rate now.  Even with a small fee, cutting that interest rate in half would probably be worth it.

 

 

 



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