So I've been a bigger R-tard than usual (financial guys step in)

NYSpeed Automotive NYSpeed Off Topic
1

Now to set things straight, I’m fantastic with bills and finances. My student loans are paid off, 800+ CS, etc, I’m only 27.

But I noticed something.

My mortgage is through MB financial. The payment with taxes and insurance etc. comes out to 1100 a month. I also pay an extra 400 a month to the principal. Now follow me…

All 400 of those dollars go to the principal.

Now when I bought my Viper, I was going to pay cash but I got an unbelievable rate through light stream loans that I couldn’t pass up, 3%.

So the payment on that car is 550 a month. But I also make extra payments, sometimes 150, sometimes 500, sometimes 200, doesn’t matter. My last extra payment was 100$…

Only 49 of it went toward the principal. Then I went back through all the extra payments I had made, none of them fully went to the principal.

I called lightstream and they said that’s how it works, and the lady on the phone didn’t have any other reason, so that leaves me google and NYSpeed. She said if I didn’t want some of the extra payments to go to interest, I should make them on the same day as my regular monthly payment.

I thought the whole point of paying off loans early was that you pay less interest, not pre pay the interest I would have paid anyways, which means I should just make regular payments for this loan???

I’m totally fucking lost, or screwed, or both.

If someone can explain I’d appreciate it.

2

Do you still have your loan documents for the Viper?

3

It’s 6 in one, half a dozen in the other. The less payments you make, the less interest you pay. It’s a simple interest loan. Whether you pay 10 less payments or pay off the car 10 months early because of principle only payments, it’s all going to shake out the same (within a couple bucks).

4

Yeah somewhere in my email. Looking them up now.

I figured as much now -_- I may just put the extra payments I was making into my savings.

      • Updated - - -

So like @Beck said it’s a simple daily interest loan. So little payments are pretty much worthless. If I pay exactly 550 a month it matures by June of 2020. If I raise my payment to say 750, it drops to April of 2019. I’m thinking this is the better way to go.

5

I made a $50,000.00 payment and the tard put it all in escrow. The only reason I found it is because I refinanced a couple months later and asked why the pay off was so high. Why the fuck would anyone put that much in escrow?!?

6

Yea, they are either applying the extra money to future payments or principle, there isn’t any other way. You should ask them for an audit on your account to fix this.

7

A simple call to your rep might have been a better idea before you write checks that you do not know fully where/how the funds are being applied…

8

Well yeah hindsight is 20/20, I ASSumed it would work the same as my mortgage. It is what it is. I will try the audit suggestion.

9

Hmm im pretty sure when i pay my car payment, if i pay more than the minimum the balance goes down quicker, which then interest on a lower amount (remaining balance) becomes less and less for each future payment.

I have gone into my credit union and they told me i didnt have a bill because i became a month ahead some how from paying more.

10

Rather than mailing checks, use their web interface because you might have an option to add $$$ for additional principle.

11

I’ve had this happen to me before.

Say your normal payment is $100. With interest its $110. You make an extra $50 payment 1/2 way through the month. $45 goes to principal, $5 to interest (that has been accrued).

Now when you make your normal payment of $110, $105 actually goes to principle.

12

On my car loan statement there is a box I can check to pay extra towards principle. Same if I pay online.

13

Wait, you own a viper? Did you not make a thread on this? Am I missing something? Do tell.

14

This thread makes me feel really careless with my money…

15

If you’d like PM me and I’ll give you my number and I’ll send you pictures.

I think a lot of people will agree with me on here, the typical Viper owners (I have met, NOT all), have very big heads. I didn’t want people thinking I was a douche bag if I started a thread.

Also I make all of my payments online.

16

X2

17

I do not necessarily think you would be a douche for starting a Viper thread anymore than anyone else on here that starts a new car thread. I look at the person creating the thread as my starting point of judgment. Whether you bought a Viper, 911, or a Yugo matters not to me…there are folks on here that I care for more than others…if someone I do not particularly care for buys a car I care about, it really doesn’t matter to me…

I’d venture a guess that a lot of people on here are like this…

On topic, sorry to hear of your car loan issue. I pay extra on principal on one of my mortgages, and have verified they are doing it right, but have never done so on a car loan…

18

@ubengineering I already thing you are a douche so I don’t think a thread would do much to tarnish your public opinion on this board. IMO.

:slight_smile:

19

I sold all my viper wheels except the Sidewinders if you are still looking. My viper is going to get a little weird, I should start a thread lol.

20

You should start a build^^

And @maxwell lol thanks. I can def say when I was 18 on this board I said some stupid ass shit lmao, I think the only reason I wasn’t banned was because I inspected 90% of the cars on this forum.

http://i32.photobucket.com/albums/d45/mikemar319/Viper_zps7dmjzgiq.jpg
Viper_zps7dmjzgiq.jpg450×800

@ultradriver10000 - I am no longer looking for wheels. I had 3k put aside that the grown up inside me put towards the principal on my mortgage.

FYI this photo was taken at the delicious Break N Eggs on Main. I got a really nice parking spot.