IFS: Prepayment penalties? Online payments?
#1
IFS: Prepayment penalties? Online payments?
Hi,
Have a few questions about financing through IFS. I could not find on the official IFS FAQ if there are any prepayment penalties. For example min. payment is 600 a month on your G and you pay 1,000 or more in any given month. Can you do this online? Are there penalties? I also read something about the last payment having to be by check and not online so you can get your title, anyone completed their payments and know what to do?
Thanks
Have a few questions about financing through IFS. I could not find on the official IFS FAQ if there are any prepayment penalties. For example min. payment is 600 a month on your G and you pay 1,000 or more in any given month. Can you do this online? Are there penalties? I also read something about the last payment having to be by check and not online so you can get your title, anyone completed their payments and know what to do?
Thanks
#4
Unlike a house, which is covered by law, paying extra on a car doesn't actually save you any interest. They either apply it to the next payment, or apply it to the last payment. No interest saved at all.
#5
Registered User
iTrader: (1)
Usually, cars (purchased) are calculated via simple interest, and you only pay for the amount borrowed, while homes have prepayment penalties unless you had the penalties taken out by paying points and/or taking a higher interest rate.
On a Lease, you have nothing to gain by paying extra or ahead of time, other than pushing back your payment.
Yes, I used to sell cars, and I am now actively engaged in the real estate market.
#6
You have it backward
Usually, cars (purchased) are calculated via simple interest, and you only pay for the amount borrowed, while homes have prepayment penalties unless you had the penalties taken out by paying points and/or taking a higher interest rate.
On a Lease, you have nothing to gain by paying extra or ahead of time, other than pushing back your payment.
Yes, I used to sell cars, and I am now actively engaged in the real estate market.
Usually, cars (purchased) are calculated via simple interest, and you only pay for the amount borrowed, while homes have prepayment penalties unless you had the penalties taken out by paying points and/or taking a higher interest rate.
On a Lease, you have nothing to gain by paying extra or ahead of time, other than pushing back your payment.
Yes, I used to sell cars, and I am now actively engaged in the real estate market.
I have heard sometimes the extra payments do not go towards the principal but just pays for the month ahead, which is not what I want (whole point is to save money on interest by paying off earlier)
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#8
Paying extra on a house does not cause a pre-payment penalty. If you pay it off, or re-finance, then you may have a prepayment penalty. On cars, they can do whatever they want with your payment. I found to my dismay my extra payments (on a ford) went to the last payment due (at the end of the finance period). So even though they had the money for years, no extra interest was saved. I have seen Capitol one just apply extra money to next months payment. I have no idea how IFS does it, but it is not covered by law like a home mortgage is. So paying extra does not necessarily save you interest charges. Call the loan provider and ask them.
#9
Registered User
iTrader: (1)
So if I pay double to minimum car loan payment through IFS online payments the extra money is going towards the principal right?
I have heard sometimes the extra payments do not go towards the principal but just pays for the month ahead, which is not what I want (whole point is to save money on interest by paying off earlier)
I have heard sometimes the extra payments do not go towards the principal but just pays for the month ahead, which is not what I want (whole point is to save money on interest by paying off earlier)
#11
Registered User
iTrader: (1)
California, being the liberal state that it is, forces all car loans to be simple interest.
Thus, it both pushes your payment back AND reduces principal. If you paid a double payment every other month, you would never be late, and save some $$$ on interest, since you pay interest on the amount borrowed.
Thus, it both pushes your payment back AND reduces principal. If you paid a double payment every other month, you would never be late, and save some $$$ on interest, since you pay interest on the amount borrowed.
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KZK
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09-24-2015 12:09 AM
KZK
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09-23-2015 11:52 PM