I have 60-month car loan at 4.75%.
My bank sent me a note saying that I am able to re-finance at 3.25%, to either 60 or 48 months.
I am calculating that it will probably save me about 400-500 dollars in interests over the loan. The drawback is that the loan will be about 7-9 months longer.
After calling my bank to get most of the answers for the questions below here is the answers:
- The car equity is 15.5K, the car loan is 11K
- The bank will not charge any fee
- The bank will allow me to pre-pay the loan without penalty, but the monthly payment will always be the same