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Posted in Auto Loans
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Question By
tylber18

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0 People Helped
Can I pay down the payment on car loan by paying $ 100 dollars a month
like a mortage loan

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Top Contributor
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Neither mortgage loans or car loans allow you to reduce your payment by paying pricipal faster.  They just reduce the life of the loan.  In order to reduce principal you would have to refinance the loan.

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Reply by
Havvkeye

79 Contributions
32 People Helped

Wow, I should have proof read that post better.  :S

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Neither mortgage or car loans will allow you to reduce your payment by paying extra.  This reduces your principal and thus the life of your loan.  If you would like to reduce the PAYMENT amount of your loan you would have to refinance it.

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7816 Contributions
1478 People Helped

Yes, just make sure that you make it clear that the extra money is to go to the "principle" only.

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