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  1. #1
    Join Date
    Mar 2005
    Posts
    4,082

    Default Help me figure this out (auto refinancing)

    I am looking at refinancing my van. We have 3 years left on the loan at 5.5%. I can potentially refinance at 2.99% for 36 months. When I use online calculators, the monthly payment is the same. So, if I am paying the same amount each month over the same time period, but the interest rates are different, why is that? My original loan was 60 months. Is it because of amortization? I will pay off the van at the same time and pay the same amount of money. Somehow this isn't making sense to me.

  2. #2
    KrisM is offline Clean Sweep forum moderator
    Join Date
    Mar 2004
    Location
    MI, USA.
    Posts
    26,497

    Default

    I made up a loan amount and did it and it comes out very close to the same. Have you paid exactly 24 payments? I get a new payment within a couple $$ if you've paid 22 payment.

    I think the math is what it is because it's not a large amount and not over a huge term. Change the numbers a bit to a house type of loan and the difference is huge.
    Kris

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