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Refinancing question. user banned
3rd Jul '13

We've been paying 11.85% interest on our minivan for 2 years. We have 3 years left on the loan. $208 month payment



I am considering refinancing the car so I called the bank and they offered 6.25% interest on a 48 month loan. $165 monthly payment.



If we just pay our monthly payment which one is going to be cheaper? Right now, we plan on paying it off next year- but sometimes things come up.



I'm not so good with math. Can someone who knows about this stuff help me out?

ℕightingale 1 child; Mississippi 8223 posts
3rd Jul '13

Re financing it would be cheaper and you will pay for less time.

user banned 3 kids; Washington 15083 posts
3rd Jul '13

<blockquote><b>Quoting Glo♥:</b>" Re financing it would be cheaper and you will pay for less time."</blockquote>



I will have the new interest rate, but my payments will be over an additional year, so it won't be less time.

Leah+2 2 kids; Texas 5797 posts
3rd Jul '13

If you leave it the way it is ($208 for the next 36 months) it'll be $7488 total.



If you change it ($165 for 48 months) it'll be $7920 total.

ℕightingale 1 child; Mississippi 8223 posts
3rd Jul '13

<blockquote><b>Quoting ♫ boobook ♫:</b>" <blockquote><b>Quoting Glo♥:</b>" Re financing it would be cheaper and you will ... [snip!] ... I will have the new interest rate, but my payments will be over an additional year, so it won't be less time."</blockquote>




Read it wrong sorry. I'd keep it as is unless you need lower payments. I'm jealous lol we pay $356 a month for our car note.

user banned 3 kids; Washington 15083 posts
3rd Jul '13

<blockquote><b>Quoting Leah+1.5:</b>" If you leave it the way it is ($208 for the next 36 months) it'll be $7488 total. If you change it ($165 for 48 months) it'll be $7920 total."</blockquote>



Thank you!



God, I wish my brain was workin right :? That was simple math lol

aℓyssa Due October 21 (girl); 1 child; Manhattan, KS, United States 18875 posts
3rd Jul '13

11.85% interest rate :shock: I'd die.



It'll be cheaper by keeping it at what it is now, BUT.. I'd suggest refinancing at the lower rate and then continuing to make your $208/month payment. You'll have it paid off before the five years and save money that way.

user banned 3 kids; Washington 15083 posts
3rd Jul '13

<blockquote><b>Quoting Glo♥:</b>" <blockquote><b>Quoting ♫ boobook ♫:</b>" <blockquote><b>Quoting ... [snip!] ... Read it wrong sorry. I'd keep it as is unless you need lower payments. I'm jealous lol we pay $356 a month for our car note."</blockquote>




Maybe you have a better car? We traded in our car toward this one. Crappy too. A brand new Nissan sentra payment was $326 but, it didn't come with a/c, a radio. Nothing. So glad to have gotten rid of that one!

user banned 3 kids; Washington 15083 posts
3rd Jul '13

<blockquote><b>Quoting aℓyssa

ℕightingale 1 child; Mississippi 8223 posts
3rd Jul '13

<blockquote><b>Quoting ♫ boobook ♫:</b>" <blockquote><b>Quoting Glo♥:</b>" <blockquote><b>Quoting ♫ boobook ... [snip!] ... new Nissan sentra payment was $326 but, it didn't come with a/c, a radio. Nothing. So glad to have gotten rid of that one!"</blockquote>




We have a 2010 Mazda 6 if I'm no mistaken the interest rate is 11%. We had a 2008 Mazda 3 with 16% interest rate and we paid less lol like $230 a month.

user banned 3 kids; Washington 15083 posts
3rd Jul '13

<blockquote><b>Quoting Glo♥:</b>" <blockquote><b>Quoting ♫ boobook ♫:</b>" <blockquote><b>Quoting ... [snip!] ... I'm no mistaken the interest rate is 11%. We had a 2008 Mazda 3 with 16% interest rate and we paid less lol like $230 a month."</blockquote>




Yeah, ours is a 2005 Chrysler town and country.:D

Dean Winchester 2 kids; 1 angel baby; Alaska 16777 posts
4th Jul '13

<blockquote><b>Quoting Glo♥:</b>" <blockquote><b>Quoting ♫ boobook ♫:</b>" <blockquote><b>Quoting ... [snip!] ... I'm no mistaken the interest rate is 11%. We had a 2008 Mazda 3 with 16% interest rate and we paid less lol like $230 a month."</blockquote>




how the heck did you pull that off... lol I had sn 08 mazda 3 interedt rste 9.5 and paid 324 a month. ugh

user banned 3 kids; Washington 15083 posts
4th Jul '13

<blockquote><b>Quoting Dean Winchester:</b>" <blockquote><b>Quoting Glo♥:</b>" <blockquote><b>Quoting ♫ boobook ... [snip!] ... how the heck did you pull that off... lol I had sn 08 mazda 3 interedt rste 9.5 and paid 324 a month. ugh"</blockquote>



They must've had a lower purchase price and/or incentives.

Dean Winchester 2 kids; 1 angel baby; Alaska 16777 posts
4th Jul '13

<blockquote><b>Quoting ♫ boobook ♫:</b>" <blockquote><b>Quoting Dean Winchester:</b>" <blockquote><b>Quoting Glo♥:</b>" ... [snip!] ... 3 interedt rste 9.5 and paid 324 a month. ugh"</blockquote> They must've had a lower purchase price and/or incentives."</blockquote>




I guess.. ive never had a car payment less than 300. my interest rate now is 5. but its only a 3 yr note I think.



Ugh. we pay 950 on vehicles... And 100 on a voluntary repo. fml.

user banned 3 kids; Washington 15083 posts
4th Jul '13

<blockquote><b>Quoting Dean Winchester:</b>" <blockquote><b>Quoting ♫ boobook ♫:</b>" <blockquote><b>Quoting ... [snip!] ... my interest rate now is 5. but its only a 3 yr note I think. Ugh. we pay 950 on vehicles... And 100 on a voluntary repo. fml."</blockquote>



Do you pay more because they have to be shipped further?



And damn! That's a lot of $$$.