needhelp01
New Member
Cash: $ 1.90
Posts: 8
Joined: 07 Aug 2006
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If I get a personal loan for $25,000, then 6 months later I make a large $10,000 payment on the loan, is it possible for me to "refinance" so that instead of it being:
$25,000 divided by 48 months = $520 per month
It would only be:
$15,000 divided by 48 months = $312 per month
And what are the requirements and terms and how do I go about doing that? I won't have any other loans or debts or anything.
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Sun Aug 13, 2006 1:02 am |
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efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
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I doubt if the OP would get 8% for an unsecured personal loan. It is hard to find definite figures, but interest may be upwards of 11% with payments in the $668-731 range (based on 12.74-17.74%).
I don't know if a "Personal Loan" has a fixed payment schedule where prepaying principal may only reduce the number of payments (like a mortgage loan), instead of size of payments. Payments may be more flexible for a "Personal Line of Credit" (more like a credit card).
If you have good established credit you may have other options. Credit cards have been offering short term rates of 0.99-1.99% or 4.99% for unlimited time for $75 balance transfer fee limit. But you have to avoid the trap of higher rates if that expires or you are late.
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Sun Aug 13, 2006 11:20 pm |
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