PenFed Auto Refi Approved!

[Anonymous]

Got approved for an auto loan refi from PenFed today!  Payment will stay about the same but the term is shortened quite a bit. 

Old loan (Had pretty bad scores at this time) 

Capital One Auto Finanace 

about 14k - 60 months @ 15.99% - payment of $318.55

*Curently 41 moths left on this loan. 

NEW TERMS

PenFed 

Remaing balance is $10,700

NEW APR IS 2.24% for 36 months = payment of $308. 

I know it doesn't feel like much of a savings but I will have the car paid off in only 3 years and it is a little less per month! I plan on paying 1K on principal before my first due date which will lower my monthly payments to 277. 

They gave such favorable terms! My car is a 2005 with 118k miles! Love PenFed!

Only bummer is I have to buy GAP again. $400. But I think I might be able to get a pro-rated refund from the current co. 

Woohoo!! 

[Appleman]

That is an awesome move, cutting off 5 months from your paid off date!

You certainly need to check, but typically paying off additional principal on an auto loan does not reduce future payments (they are not adjustable). The payments remain the same, you will just end up paying less overall interest and will be paid off about 3 months early.

At any rate congrats on taking care of your credit so it could take care of you!