I’m 33 paying $432 a year. Full coverage through State Farm. I do have my house and other vehicles bundles so that helps.
One way to save tremendously is bundling homeowners insurance as well. I would think a lot of these lower premiums might be reflecting that as well. Curious to know. My car insurance rates dropped almost in half when I bundled. Also with the insane amount of rock trucks out there I went with Farmers cause they offered windshield replacement coverage which a lot of other dont.
How much was your car?
You must have a longer than 3 year car loan on it. Amortization at 50k 3.1% 3 year is 1100. I know because that’s the exact payment I make
Yes, I took the longer loan term offered because the rate didn't change from 36 months to 72. I can make larger payments directly to my principle that way. It made sense in my head when I did it lol.
I’m no banker, but that doesn’t make much sense to me. The total interest paid is key. A lender will usually tempt people to take in a shorter loan by dropping the rate. That gets the risk off of the bank sooner while also lowering their profit. Special risk assessment calculations take place on car and house loans, the banks still get paid if there needs to be a repo / foreclosure. But this is my calculation breakdown:
This is a great breakdown! However I will say that in the end it looks like the interest difference is around 2k. I can’t speak on behalf of Hoosier but we’re both nurses and I did something similar because of the time value of money (time being the present, other parts of my life I want to spend my money on before I take on certain jobs or contracts later which will allow me to pay off the car quickly). There are a few personal elements of my life I wanted to arrange my financing around. In the end I’ll only have my loan for another 1-2 years while I financed for 72 months. It also made sense for my life even though the overall interest paid is more, because I want the cash flow for other things right now. When I decide to pay the sum of the loan early I will ideally avoid paying some interest.
Yes no doubt. That is a good reason. I wish banks gave breakdowns like these, they put all the focus on rates alone. I’m probably going to run mine all the way out, I was trying to collect some liquid cash to use as a down payment for another multiunit but I somehow talked myself into buying 20k worth of car parts instead ?
I also traded in a vehicle with about 7k worth of equity. Not that I feel the need to breakdown my exact finances, but isn't that interest amount assuming I pay interest for the full 72 months? I'm making much larger than the minimum payments. I don't really feel the need to refinance since it's going to be paid off in a year or two. One of the benefits of travel nursing is sometimes I make 20k+ a month if I want to work 4 days a week. But maybe I should look at an amortization schedule to make sure I'm not shooting myself in the foot lol.
The amount of your monthly payment that goes to interest is (APR/12 months * current balance). The rest of the payment goes to lowering principal. Your bank should give the amount of interest charged per month. I financed 35000 with a 60 month loan at 3.8%. I pay 1000 per month plus some bonus money this year will go to the car loan so it should be paid off in well under 3 years.
