April 13, 2013

Not What I Thought...

I posted the other day about me being able to re-finance my car at half the interest rate and it was a good thing right? Wrong..I got the papers in the mail on Friday and I went over the terms of the loan.

It seems one of the terms I was not told about was that for insurance you can not have a deductible higher than $500.00 on your comp or collision. Well, mine are at $1000.00. Then I realized that the terms as far as how many months, is still the same as I have now.. I also noticed that while the interest rate may be half of what I am at now my payments are still only about $36.00 cheaper?!? So I called them back and ask how this could be..

The only difference between this loan and the one I have now is the amount of interest I will pay. Meaning, if I keep my current loan, over the life of the loan I will have paid out $5000.00 in interest. If I go with the new loan I will pay out $2800.00 over the next 60 months.. But, if I also have to drop my deductibles on my insurance that means my insurance is going to go up which will then make what I lay out each month for my car between the payment and insurance even higher than what I pay now..

The Man (hubby) and I decided we would stay right where we are even with the higher interest rate because once the credit cards are paid off we are going to be doubling our car payments to pay it off quicker.. So the good deal was not such a good deal.. Things sometimes seem to 'sound' good sometimes but when you see them on paper...not so much.....

6 comments:

  1. Sometimes things are not what they appear to be when we read all the details- xo Diana

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  2. You are soo right of course! MUCH in life is not what it appears to be is my findings, lol. But loans especially. My hubby has worked in sales for YEARS AND YEARS..and is always figuring financing for people etc. This has helped us read between the lines many times. Me? I'd probably never catch it! haha. Enjoy your week-end!

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  3. Bummer, but you are doing exactly what I would suggest - just add more to your car payment to pay off a bit quicker. Good for you for reading the fine print!

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  4. It's so good that you caught it before you signed it, and were committed.

    It's all progress, and you are moving towards your goal each day.

    Jen

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  5. Refinancing is a tricky business. We found that out after getting the papers in the mail also. Wasn't such a great deal that we thought it was. We paid off our credit cards and are now making extra payments so we'll have the truck paid off nine months early. Then the money that should have gone to the truck payment will go to extra principle payments on the house. Debt sucks. :)

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  6. ask if you can pay against the principle and not double on payments. If you can pay against principle, you'll pay it down faster...just like a house payment.

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~Robyn~ XO