Can You Figure This Out

[Sian]

This is about my car loan. Yes I know this interest rate is ridiculous, yes i know i should have financed for a shorter time. but what is done is done and i'll pay it off early plus i'm goin to refi it anyways (& no not for the same amount of time).

I've tried using car loan calculators but they can't even give me a ballpark figure of an amorization schedule so i can figure out where my payments are suppose to be at the end of each month.

no trade-in, only a small down payment.

down payment at dealership amount: $500
interest rate: 11.5%
car loan amount: $9,519
gap insurance financed: $500

Total financed: $10019
loan payments are bi-weekly: $113.55 due on 2nd and $100 due on the 16th
loan payment total is: $213.55

loan payments started 2 jun 2012

payment--------balance
113.55---------10,009.34
100-------------9,953.37
113.55----------9,889.85
100-------------9,833.36
113.55----------9,772.33
100-------------9,715.32
113.55----------9,653.67
100-------------9,596.13
113.55----------9,530.82
100-------------9,472.75
113.55----------9,409.80
100-------------9,351.19
113.55----------9,284.65

i'm not sure how they came up with this. if it's paid bi-weekly, shouldn't it be the same amount each time? and how is it that my first payment only made a $10 difference?

my bank does state tht the YTD interest already paid is $660.50.

i'm not asking for anyone to send me a schedule. i'm only askin on how the math works on this and if it makes sense to anyone else. and if you can at least let me know what's goin on.

btw, are banks obliged to give you an amoritization schedule if requested? just curious.

[siggy_freud]

You're paying the bulk of the interest up front, and as time goes on, more and more of your payments will be applied to the principle of the loan. Should the loan be paid off early, this ensures the loan underwriter still makes some money.

[JustBill]

This is with a bank? Weirdest thing I've seen with the uneven payment amounts. As for the question about the balance decreasing by only $10 the first [fractional] payment, you need to review the number of days between the contract implementation date and the first partial payment. You likely had a longer stretch of days on the front-end than your typical time between remittance, you'd owe interest for each day the money was outstanding. As for a front loaded interest payment, the interest is only more at the beginning of the installment contract because the outstanding balance is higher at that time. Unless you signed a contract calculated based on the "rule of 78", where the lender does collect a heavier amount of interest during the beginning of repayment compared to a simple interest loan, which most auto loan contracts are today.

Mercy, get rid of this thing tomorrow.

[esb3357]

I recommend you look to refinancing with Navy Federal or USAA. Both of them are use to working with service members. You want a simple loan, not the one that you have which is like a mortgage. A simple loan evenly distributes the interest throughout the life of the loan. Rewarding you in interest saved if it is paid early.

[bjl584]

What type of car is it? What's it worth? I'd look into doing a refi with a credit union (usually rates are better there than at banks, but shop around.) Do a traditional loan. 36 months would be ideal. Your interest rate is crazy. Do you have bad credit?

[Sian]

You're paying the bulk of the interest up front, and as time goes on, more and more of your payments will be applied to the principle of the loan. Should the loan be paid off early, this ensures the loan underwriter still makes some money.

ok. well i guess that explains that...

[Sian]

This is with a bank? Weirdest thing I've seen with the uneven payment amounts. As for the question about the balance decreasing by only $10 the first [fractional] payment, you need to review the number of days between the contract implementation date and the first partial payment. You likely had a longer stretch of days on the front-end than your typical time between remittance, you'd owe interest for each day the money was outstanding. As for a front loaded interest payment, the interest is only more at the beginning of the installment contract because the outstanding balance is higher at that time. Unless you signed a contract calculated based on the "rule of 78", where the lender does collect a heavier amount of interest during the beginning of repayment compared to a simple interest loan, which most auto loan contracts are today.

Mercy, get rid of this thing tomorrow.

yeppers, it's with a bank. my credit union actually. it's the first time i've done business with them. i did shop around also & this was the best deal at the time.

ok. i bought the vehicle in the last week of april but the payments didn't start til june so that's a reasonable explaination of only a $10 decrease.

i'm not sure about the "rule of 78" because i don't have a copy of my promissory note with me. i'll need to check it once i get back home.

[Sian]

I recommend you look to refinancing with Navy Federal or USAA. Both of them are use to working with service members. You want a simple loan, not the one that you have which is like a mortgage. A simple loan evenly distributes the interest throughout the life of the loan. Rewarding you in interest saved if it is paid early.

if my bank doesn't give me a better rate when i get back then i'll shop around.

[Sian]

What type of car is it? What's it worth? I'd look into doing a refi with a credit union (usually rates are better there than at banks, but shop around.) Do a traditional loan. 36 months would be ideal. Your interest rate is crazy. Do you have bad credit?

2004 kia sorento with 77,000 miles. it's currently worth about $6,500 (although it was worth more when i first bought it of course).

it's currently at 60months because i didn't know what my situation would be (i bought it before i got to my 1st duty station straight out of school).

at this point, after i get back home i'll be able to finance after living in the states for a few months (this way i'll know my bills & whatnot) because i want to make sure that the payments are still what i can afford.

my plan is to refi at a lower payment but still make the SAME payments.

at the time my credit was below 600, it is now 617-655 depending on which agency is contacted. going through a divorce and a lot of things hit my credit that wasn't actually mine but i've dealt with it.