Long Term Low Interest Rate

[Anonymous]

I've been reading here and elsewhere about interest rates and the loan term lengths and most seem to believe that the longer the loan the highter rate will be but Wells Fargo just approved me and the longer the loan the lower the rate is. The best is 3.37% for 72 mos.

There's not a whole lot of difference between 24 and 72 mos but a lower rate is a lower rate. I don't see any downside to picking the longest term with lowest rate and then doubling the payments as long as there isn't a prepayment penalty. Anybody?

[Anonymous]

I would take the longer term with the lower rate. Additionally, this gives you a lower payment amount, but I would pay aggressively as if it were a shorter term loan. If you have a tough month, you could always scale back and pay the minimum payment.

[fury1995]

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@Anonymous wrote:

I've been reading here and elsewhere about interest rates and the loan term lengths and most seem to believe that the longer the loan the highter rate will be but Wells Fargo just approved me and the longer the loan the lower the rate is. The best is 3.37% for 72 mos.

There's not a whole lot of difference between 24 and 72 mos but a lower rate is a lower rate. I don't see any downside to picking the longest term with lowest rate and then doubling the payments as long as there isn't a prepayment penalty. Anybody?

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Did Wells Fargo offer these terms directly or was this offered indirectly (via a car dealership)?

What are the terms offered for less than 72 months (APR)?

Something seems off about this. I'll tell you why after your response.

[disdreamin]

Confirm that there isn't a prepayment penalty (I've not heard of one one auto loans, but to have lower rates for longer terms...it makes me wonder if there is something weird going on there).

FWIW, I'd look a little harder for rates. Our local CU currently has 1.75% for up to 60 months and 2.25% for 72 months.

[Anonymous]

https://www.dcu.org/loans/auto-loans.html

[Anonymous]

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@fury1995 wrote:

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@Anonymous wrote:

I've been reading here and elsewhere about interest rates and the loan term lengths and most seem to believe that the longer the loan the highter rate will be but Wells Fargo just approved me and the longer the loan the lower the rate is. The best is 3.37% for 72 mos.

There's not a whole lot of difference between 24 and 72 mos but a lower rate is a lower rate. I don't see any downside to picking the longest term with lowest rate and then doubling the payments as long as there isn't a prepayment penalty. Anybody?

---

Did Wells Fargo offer these terms directly or was this offered indirectly (via a car dealership)?

What are the terms offered for less than 72 months (APR)?

Something seems off about this. I'll tell you why after your response.

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It was directly to me, but after learning more it was a preapproval without the bank knowing what the vehicle was, only my requested amount. It ranged from about 3.64% for 24mos on down to 3.37% at 72mos. Once I plugged in the vehicle, which was older and less expensive than I had initially planned for, the interest rate doubled. There also was no prepayment penalty.