Pay Off Loan Quicker

[Morphyyy]

I have a friend that needs yall's help on how much he would need to pay extra each month to pay off his car a year sooner.

What if he was to make a $5,000 principle only payment what would that do?

Original Loan - $20,553

Loan Opened - December 18, 2017

Interest Rate - 16.43%

Loan Term - 81 Months

Current Payment - $453.80

Todays Balance - $16,571

Paid so far - $13,614

Interest - $9,632

Principal - $3,981

[MitchDeerfield]

If you have the $5,000 to pay down the car loan, just do it.  Your interest rate is sky high. 

[Kforce]

@Morphyyy wrote:

I have a friend that needs yall's help on how much he would need to pay extra each month to pay off his car a year sooner.

What if he was to make a $5,000 principle only payment what would that do?

Interest Rate - 16.43%

Current Payment - $453.80

Todays Balance - $16,571

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 $16,571 @ 16.43 with $453.80 - month =  51 months and 6,558 interest cost.

$16,571 @ 16.43 with $560 - month = 39 months and 4,821  interest cost. ( -1 year)

$5000 on principal would save a lot.

11,571 @ 16.43 with $453.80 - month = 32 months and 2,760 interest cost.

[dunn2500]

**bleep**, what about refinancing?........getting out of that term and rate is the bigger issue, if they have made payments their score should be better

[Kforce]

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@dunn2500 wrote:

**bleep**, what about refinancing?........getting out of that term and rate is the bigger issue, if they have made payments their score should be better

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With that long a loan and that interest rate,

OP is most likely too upside down for a refinance.

Car has lost 40+% value and only paid down approx 20%.