Hi Guys,

Quick background - Bought the evo in 06/2009, put 10k down and financed the rest included taxes. I ended up paying taxes out of my own pocket and throwing the taxes from the loan back into the principal.

So i'm now down to 13k with having the car for only 6/mo.

Would it be better to do double payments and half the loan time or refinance to lower the rate and also take into account the lowered principal amount.

Its dropped about 5/6k since I purchased the car.

Let me know what you think please.

Thanks.

 

It will all depend on what your interest rate is and if the refi is much better.

 

If you can afford to go ahead and double up on the payments i would just do that, it just seems easier cause the extra payments would be going on your principal so it would drop

 

Depends on your interest rate. Its all a tradeoff.

 

I gotcha.

I think my rate is 6% right now at 48 months.

I pay 398/mo and that's not an issue, I guess if I just pay it off early I'll save money no matter what and no have to pay a refinance fee.

 

just double payments. I dont know your credit but it not gonna get much better that 6 in most cases.

 

I haven't checked in a while but 6 is good? isn't like 4.5/5 good?

I should have just opened a checking account, would have taken off a point from the start. I'm dumb lol.

 

You are just asking to pay more in interest if you refinance. Cars don't appreciate like houses (used to), so getting a new loan is just going to make the bank happy, not you.

If you can afford to double up on payments, do that and pay the car off quicker. If not, just pay it out normally.

 

refi for the same amount of time then double payments after that

 

Ah okay, I gotcha - Just wasn't sure - I think double payments are the way to go then I can own her sooner!!!

 

yea if you can qualify for those rates then yes. Its only going to make a difference of about $20-40 in your payments though. Your better off just keeping the loan you have now and paying double or more of the monthly minimum. Unless you refinance at a lower interest rate and for a shorter loan term, maybe 12 months. Own you car in a year.

 

20 bucks a month is nearly 1000 over a 48 month loan. So if you were paying it off over the full time and could get a lower interest rate, it'd be worth it. I doubt that would happen though, so the best thing you can do is pay it off as fast as you can.

 

If you are able to comfortably pay it off early, i would do so.

Aaron

 

I even talked with my mom and she suggested I just make double/triple payments if possible. So I think i'm going to do that for a few months and see how taxing it is on my funds - if i can handle it the car will be paid off in just over a year from now :-D

 

pay it off it all possible you will love the financial freedom