I guess I am asking how does a refinanced auto loan work.
Obviously you have your initial loan plus interest. But when you refinance does that equal: Your initial load plus the original interest plus the new interest? Or your initial loan plus just the new interest?
Thanks
Related Blogs
- The retreat of Grand Theft Auto: Class Action
- Important Facts About Alabama Auto Insurance « Auto Insurance Articles
- CNN 360 Anderson Cooper – Auto Insurance Part 1 | Finance
- Poor Credit Auto Loans: Auto Loans for People With Poor Credit …
- Auto Twitter Bot
- Corker's Work on Auto Bailout May Have Impacted Financial Reform …
- Lowering Your Risk With High Risk Auto Insurance « Auto Insurance …
- Mortgage Interest Rates | Telemarketing
- What Does Insurable Interest Mean on a Life Insurance Policy …
- Interest on late payment from customers against supply of goods is …
- US Interest Rate Rise In Pipeline. Tin Hats On! | The Conservative …
- Commodity Futures and Forex Interest Rates What's the Difference?
- How To Reduce Interest Rates Of Credit Cards
- What are the highest interest rates for savings and fixed deposit …
- Health Care: Lock and Load – Swampland – TIME.com
- RoAkSoAx's Weblog » Call for Testing: Cluster Stack – Load Balancing
- The Sermon's Domain » Blog Archive » Hot Boy Hoffa – Load My Mack …
- Pre-load Metro 2033 on Steam : BeefJack
- A load of old cobblers « Adventures of an Idiot – occasional …
- Student-Loan Reboot to be Folded into Healthcare Reform | RedState
Mail this postPopularity: 1% [?]
When you refinance, basically you are taking out a new loan to pay off the old loan. So, your old loan no longer exists. Your new loan will consist of the balance you owe on your old loan, plus the interest accruing over the term during which you pay off your new loan. The new lender will get a "payoff figure" from the holder of the first loan. That amount will be less than the amount you would have paid in total if you had continued paying the old loan to its maturity date, but it will be at least the principal balance still outstanding on the old loan.
If you will open a saving account at a credit union (even keeping only a $25 balance), you can usually take out a loan at a loser interest rate than you will get from a bank or finance company. If you agree that the credit union will automatically withdraw your payment from the savings account each month, sometimes you will be able to reduce your interest rate by another 1/4%. Just make a deposit to the savings account each month in an amount and on a date that will ensure that there is at least $25 more in your savings account than you need for the amount of your loan payment.
The only way to save money by refinancing is to refinance to lesser amount of years, yes, your monthly payment will be higher but the total interest will calculate to be less. My suggestion to you, do not refi, pay it off sooner by making extra payments. Having a car payment has your finances stuck in a rut.