Prepayment Penalty

[Anonymous]

Is paying more towards a principal and potentially ending a term early because of it cause a pre payment penalty?

I know sometimes creditors will give you a penalty because they know you want to refinance your car with a lower interest rate,

and it they'll lose on their interest.. that makes sense.

But, will i get penaltized for paying back THEIR MONEY FASTER THAN EXPECTED?

[09Lexie]

You'll need to review your contract.  Most larger lenders do not offer pre-payment contracts

[enharu]

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@mikemsceo wrote:

Is paying more towards a principal and potentially ending a term early because of it cause a pre payment penalty?

I know sometimes creditors will give you a penalty because they know you want to refinance your car with a lower interest rate,

and it they'll lose on their interest.. that makes sense.

But, will i get penaltized for paying back THEIR MONEY FASTER THAN EXPECTED?

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review your contract, or call that lender directly.

Most lenders do not have pre-payment penalties, but it also depends on who you are dealing with.

If you financed your car with the manufacturer's financing arm, then there's a very high chance of there not being any pre-payment penalties at all.

[Anonymous]

Actually went to the Credit Union today and forgot to ask.

But, thanks.. I thought it was a general thing.. didn't know lenders have different rules as far as that goes