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Contributor

I just bought a car with  a loan.

 

Can I apply a payment to the loan to lower the payment without refinancing fees?

 

TIA,

Jeff

3 REPLIES

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Hello @Dismissed, Thank you for reaching out. Regrettably, there is no option to lower the scheduled monthly payment without refinancing the remaining balance of the loan. - Ben

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...but you have to admit if it is permissable to do that some mortgage loans why is it not a good idea for an auto loan?  New product the other guys would not have, USAA!

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Related is the typical financial advisor advice not to ever take money temporarily from your IRA to payoff consumer debt/loans.  That is NOT the best advice.  The reason they "advise" against such a tactic is to assume that everyone has no amount of self control to actually replace the IRA borrowed funds in time to avoid a penalty caused by not following the strict requirements of the "60 Day Rollover".  We often used IRA funds and repaid them to payoff USAA car loans, equity loans, and a boat loan very early.  We always replaced the IRA funds within the time limit for no penalty.  

 

Sometimes you can secure a temporary good deal on some consumer product or for emergeny use by tapping that IRA and paying it back within sixty days.  As long as you have a definite, workable plan and the self control to replace the funds back into the IRA within the time limit it is a handy strategy in order to avoid the daily rackup of interest on a consumer loan.  Be certain, should things go pear shaped, to understand the penalties involved.  

 

For all the details search:  60 Day Rollover, IRA