Monthly payment dropping??
#1
Monthly payment dropping??
This may be the wrong place for this thread, my appologies. My monthly payment for my HHR is $273.25 a month with 0% financing. I have made 3 payments of exactly $280.00 every month. My newest statement says I owe 266.50 for my next payment. How can a monthly payment go down when I have only paid $20.25 extra in 3 months?
#2
Originally Posted by GhstRider
This may be the wrong place for this thread, my appologies. My monthly payment for my HHR is $273.25 a month with 0% financing. I have made 3 payments of exactly $280.00 every month. My newest statement says I owe 266.50 for my next payment. How can a monthly payment go down when I have only paid $20.25 extra in 3 months?
But my question is why pay more with 0%?
You're not saving anything by paying early. The only accounts I do that with are ones which charge me interest. On our 0% loan we only pay what's due.
#4
Originally Posted by GhstRider
This may be the wrong place for this thread, my appologies. My monthly payment for my HHR is $273.25 a month with 0% financing. I have made 3 payments of exactly $280.00 every month. My newest statement says I owe 266.50 for my next payment. How can a monthly payment go down when I have only paid $20.25 extra in 3 months?
Point one - While small your credit report will show paid in advance which in _some_cases_ could make your credit report look better. [some lenders see pre/advance payment as a bad thing, because you did not pay per-contract!]
Point two - While small you will shave at about a payment off the end of your loan... if you keep the loan for the full term..
#5
Originally Posted by GhstRider
This may be the wrong place for this thread, my appologies. My monthly payment for my HHR is $273.25 a month with 0% financing. I have made 3 payments of exactly $280.00 every month. My newest statement says I owe 266.50 for my next payment. How can a monthly payment go down when I have only paid $20.25 extra in 3 months?
#6
Try that with a mortgage instead. Your car loan is not saving you anything, but on a mortgage if pay enough onto the principal, you have the distinct possibility of saving thou$and$ of dollar$.
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Lone Ranger
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05-21-2008 06:40 PM