Question On Adjusting Monthly Payments

[BigO1120]

I’m financing my 3 (I love keeping my cars) and my monthly payments are about $354.23 a month. I’ve been sending $360 ever since my payments started on the car about 2 years back. Would it be possible to contact my bank who provided me the loan (Chase) and ask them to adjust my monthly payments so to reflect the fact that I’ve been sending more $$$ then the required payment?

Thanks in advance!

[BigO1120]

[Dmitriy@AUTOcouture]

Originally Posted by BigO1120

I’m financing my 3 (I love keeping my cars) and my monthly payments are about $354.23 a month. I’ve been sending $360 ever since my payments started on the car about 2 years back. Would it be possible to contact my bank who provided me the loan (Chase) and ask them to adjust my monthly payments so to reflect the fact that I’ve been sending more $$$ then the required payment?

Thanks in advance!

I'm not sure how things work with the auto loan's, but I am a mortgage loan officer for Chase and on a regular 30 year mortgage when you pay over your monthly minimum, the remainder does not go towards your principal. Rather, it decreases the amount of payments that have to be made. I will call and find out for you though, give me about an hour or so.

-Dmitriy

[BigO1120]

Dmitriy...THANK YOU!

[txusa03]

ppl dont usually refinance car loan. how long is your term 4 or 5 years term. The bank does not make alot of money from car loan.

Home loan/mortgage is different. For a mortgage, the early year of the mortgage payment include more interest money then principle money. As you pay off the mortgage and get close to the term (say 30 years mortgage), the payment has less interest and more principle. In this case, it pays to apply what ever extra money you have toward your principle in the earlier part of a mortgage.

On a car loan, I am not sure if it works the same. I would do 1 of 2 things. I would pay the agreed upon payment. What extra money i have each month, i save it up and by the time I save up enuf money, I might pay off the car (if there is no penalty for early payoff). Just my preference.

[txusa03]

Originally Posted by shpuntik

I'm not sure how things work with the auto loan's, but I am a mortgage loan officer for Chase and on a regular 30 year mortgage when you pay over your monthly minimum, the remainder does not go towards your principal. Rather, it decreases the amount of payments that have to be made. I will call and find out for you though, give me about an hour or so.

-Dmitriy

I have a mortgage. If I have an extra $800 a month, I can pay my mortgage and tell them I want to apply the 800 toward my principle. So on the next statement, my principle amount drop by the additional $800. How come your bank does not offer that?

[Dmitriy@AUTOcouture]

Originally Posted by BigO1120

Dmitriy...THANK YOU!

Ok, just found out... When you pay over your minimum, it does go towards your principle and the next month's payment should adjust to reflect that. However the phone rep also said that since interest is charged per diem, it can vary depending on how close you pay towards the end of the billing cycle. If my explanation seems a little foggy or unclear, call (800)336-6675, option 2, and then press star zero. Good luck.


Best,

Dmitriy

[Dmitriy@AUTOcouture]

Originally Posted by txusa03

I have a mortgage. If I have an extra $800 a month, I can pay my mortgage and tell them I want to apply the 800 toward my principle. So on the next statement, my principle amount drop by the additional $800. How come your bank does not offer that?

It depends on the kind of mortgage that you have, since there are over 20 different kinds its hard to determine if we are talking about the same product. It also varies on how much of your monthly payment is interest and how much is principle.

[BigO1120]

I'm sorry for the confusion. It's not really a loan. I'm FINANCING my 3 through Chase. I don't know if this makes things different.

[Dmitriy@AUTOcouture]

Originally Posted by txusa03

I have a mortgage. If I have an extra $800 a month, I can pay my mortgage and tell them I want to apply the 800 toward my principle. So on the next statement, my principle amount drop by the additional $800. How come your bank does not offer that?

I'm sorry txusa03, I worded it incorrectly... When you pay over your monthly minimum, it depends how much of your payment is comprised of interest, the remainder DOES go to principal. However, your monthly payment does not change on a regular 30 year mortgage. Also as a side note, just like you said, you actually have to call and let the bank know to apply it towards the principal and not towards any un-accrued interest.

-Dmitriy

[Dmitriy@AUTOcouture]

Originally Posted by BigO1120

I'm sorry for the confusion. It's not really a loan. I'm FINANCING my 3 through Chase. I don't know if this makes things different.

I am not sure if that makes a diffrence or not, however call that # that I posted and find out.

[BigO1120]

Will do! Thanks again!