Refinancing question
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Senior User
Joined: Aug 2002
Posts: 129
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From: Wellsburg, WVa. USA
Refinancing question
Has anyone refinanced their truck from an online source?
I NEED to refinance & now is the time, (interest rates are low)
I need advice on refinancing....either online or otherwise.
I am not an experienced loan person, SO I NEED HELP!!!!
I NEED to refinance & now is the time, (interest rates are low)
I need advice on refinancing....either online or otherwise.
I am not an experienced loan person, SO I NEED HELP!!!!
Post Fiend
Joined: Feb 2003
Posts: 6,940
Likes: 2
From: Eastern WA
Refinancing question
I like buying new rigs and only making one payment because I'm not gonna pay anyone interest. However, when looking at the financing packages, watch for hidden fees and especially watch out for early payoff penalties. For that matter, check out your current financing deal and see if they snuck in an early payoff penalty; I've head plenty of my buddies whine LOUD about this one.
You may also find attractive deals at your bank. Remind them of the 1 - maybe 2% they pay you on your savings account. Do not be afraid to call them and your current finance campany and negotiate too; the worst they can do is say no. Also, if you can finance thru a CU, you may find the deals to be better than a bank.
You may also find attractive deals at your bank. Remind them of the 1 - maybe 2% they pay you on your savings account. Do not be afraid to call them and your current finance campany and negotiate too; the worst they can do is say no. Also, if you can finance thru a CU, you may find the deals to be better than a bank.
Posting Guru
Joined: Sep 2002
Posts: 1,359
Likes: 0
From: Charleston, SC
Refinancing question
Make sure your current financing does not say anything about agreeing with the rule of 78 before refinancing.
If it does, you could get a loan for a few percent less and end up paying much more Interest in the long run.
If it does, you could get a loan for a few percent less and end up paying much more Interest in the long run.
Admom
Joined: Feb 2001
Posts: 9,414
Likes: 201
From: Silver Springs
Refinancing question
One thing you may want to consider is how long your current loan is for and how long you've been paying on it.
Most loans, especially auto loans, front load the interest so the first couple years the majority of your payments are interest. When you get to 2 1/2 to 3 years of pmts, you've already paid a majority of the interest and are just now beginning to really eat away at the principal.
I'd also suggest checking with your bank.
Most loans, especially auto loans, front load the interest so the first couple years the majority of your payments are interest. When you get to 2 1/2 to 3 years of pmts, you've already paid a majority of the interest and are just now beginning to really eat away at the principal.
I'd also suggest checking with your bank.
Posting Guru
Joined: Feb 2002
Posts: 2,404
Likes: 3
From: Cleveland, WI USA
Refinancing question
If possible, also check into a home equity loan. The rates are sometimes better and they're more flexible on the conditions.
But beware. Lending institutions are not what they used to be. You used to get all the info up front and it was 100% clear. Now, if you don't ask, they don't tell. It's getting more and more like buying a used car from some shady dealer out in the boonies.
Banks are finding more and more ways to get extra money out of people. Though they may be legal ways, they're not always ethical. And I'm not talking about the small town banks. It's the huge nationwide banks that are the worst.
Be sure you READ EVERYTHING. Ask for a truth in lending statement which will outline all fees involved. Check the pre-payment penalties like someone else mentioned. Also check the late payment fees and if there's a grace period (that's a biggie).
If you can, have the payment automatically transfered from your account so the lender can't claim the check was late. If you make extra payments, be sure to tell them to apply the extra to the principal only. If you don't, they'll apply it to the interest.
Good luck.
Kevin K.
But beware. Lending institutions are not what they used to be. You used to get all the info up front and it was 100% clear. Now, if you don't ask, they don't tell. It's getting more and more like buying a used car from some shady dealer out in the boonies.
Banks are finding more and more ways to get extra money out of people. Though they may be legal ways, they're not always ethical. And I'm not talking about the small town banks. It's the huge nationwide banks that are the worst.
Be sure you READ EVERYTHING. Ask for a truth in lending statement which will outline all fees involved. Check the pre-payment penalties like someone else mentioned. Also check the late payment fees and if there's a grace period (that's a biggie).
If you can, have the payment automatically transfered from your account so the lender can't claim the check was late. If you make extra payments, be sure to tell them to apply the extra to the principal only. If you don't, they'll apply it to the interest.
Good luck.
Kevin K.
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Senior User
Joined: Jan 2002
Posts: 351
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From: Delaware
Refinancing question
Originally posted by Carlene
They all do it, same as your mortgage, personal loans - all of 'em - and have been for as long as I can remember. "Loan Amortization"
They all do it, same as your mortgage, personal loans - all of 'em - and have been for as long as I can remember. "Loan Amortization"
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Post Fiend
Joined: Feb 2003
Posts: 6,940
Likes: 2
From: Eastern WA
Refinancing question
Thanks for the update. I'm understand amortization very well but was wondering if they had devised a devious plan that was forcing consumers to make accelerated interest payments, resulting in a slower principal payoff in the early years of the loan. Not sure if this would be legal, but if it was, ouch!
More Turbo
Joined: Aug 2000
Posts: 721
Likes: 1
From: Floyd, Va
Refinancing question
peoplefirst.com
The rates are under 6 percent on refinancing under 60 months. Both of my rigs are financed throu them. One was a purchase, and the other was a refinance. Very quick form to fill out and they called me back in a few minutes with approval. Had a check in a week. Payments are automated, and you can check your account online.
I have never had a problem with them of any kind.
Tony Warren
Nebraska
The rates are under 6 percent on refinancing under 60 months. Both of my rigs are financed throu them. One was a purchase, and the other was a refinance. Very quick form to fill out and they called me back in a few minutes with approval. Had a check in a week. Payments are automated, and you can check your account online.
I have never had a problem with them of any kind.
Tony Warren
Nebraska
Posting Guru
Joined: Feb 2002
Posts: 2,404
Likes: 3
From: Cleveland, WI USA
Refinancing question
Originally posted by CowboyBilly9Mile
Thanks for the update. I'm understand amortization very well but was wondering if they had devised a devious plan that was forcing consumers to make accelerated interest payments, resulting in a slower principal payoff in the early years of the loan. Not sure if this would be legal, but if it was, ouch!
Thanks for the update. I'm understand amortization very well but was wondering if they had devised a devious plan that was forcing consumers to make accelerated interest payments, resulting in a slower principal payoff in the early years of the loan. Not sure if this would be legal, but if it was, ouch!
Banks are getting to be like poilticians. They only tell you what they want you to know. The rest you'll find out after you sign on the dotted line.
Kevin K.
Elder User
Joined: Sep 2002
Posts: 780
Likes: 0
From: US
Refinancing question
My first truck paynmeny went like this: I pay 255 a month, 230went to intrest 25 went to principal. After 2 years im up to a 50 50 split. That is through a credit union. 5 years at 8%.
Laughing Gas
Joined: Apr 2001
Posts: 1,024
Likes: 0
From: Elon, NC
Refinancing question
Tim, you might want to talk to the credit union about refinancing the loan. We bought my wife's car through our credit union 2 years ago @8.95%. Last week we refinanced the balance with the same credit union @ 4.75%. We cut the terms by 9 monthly payments. Interest rates are the lowest they have been in years!!!
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