early repayment of loans

Kenjo · Postby **Kenjo** » October 25th, 2011, 9:28 pm

most banks have early repayment of automobile and house mortgage loan fees.if you want to repay a full loan ahead of time after paying the early termination fee have you guys ever come over scenarios where there extra interest is partially repaid by the institution or is it standard practice for them to keep everything.i am trying to find out some places that possibly have both house and car loan early termination fee exemptions

Kiro_lee · Postby **Kiro_lee** » October 25th, 2011, 10:34 pm

my loan at rbc is on the reducing balance and i face no penalties for early repayment. Good practice when having your loan interview is to negotiate.

Postby **ProgressiveTT** » October 25th, 2011, 10:39 pm

Most installement loans nd demand loans don't have early termination fees. You'll pay less if you pay off early.
Mortgages on the other hand are a little more complicated. Can't reall say where this is concerned.

Kenjo · Postby **Kenjo** » October 25th, 2011, 10:47 pm

I will put in the exact wording when I get some time later of the part of the contract that refers to early repayment & see how it compares to you others guys experiences.I am not sure if I qualify to get back some interest if they will just refund me minus the penalty for early repayment or if after I pay it off will they refund me after that.thanks for the advice

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streetbeastINC. · Postby **streetbeastINC.** » October 26th, 2011, 2:00 am

6 months interest ... plus payment...

gt4tified · Postby **gt4tified** » October 26th, 2011, 11:06 am

Credit Unions ftw.....reducing balance loans!

biggreen · Postby **biggreen** » October 27th, 2011, 9:35 am

With loans u pay the interest first (RBC), so if you pay it off lets say 1 year after taking it, u not gonna get any benifits. Well that is my experience... unless i was ripped off, if i was then in not supprised.

Postby **ProgressiveTT** » October 29th, 2011, 12:14 pm

gt4tified wrote:Credit Unions ftw.....reducing balance loans!

The joys of marketing:
You really need to begin to understand the term reducing balance and then you'll understand why it's not a good thing.

If a credit union tells you they are charging 2% on the reducing balance, you're actually paying 2% interest per month, not year.
You're paying (2 x 12) or 24% interest per year.
That's the same as most credit cards.

pugboy · Postby **pugboy** » October 29th, 2011, 12:22 pm

if it is a mortgage, sometimes they have you in a group insurance rate which is cheaper than if you went and got home insurance on your own.

I paid off a home mortgage and the new insurance rate was a lot more than what Sagicor's broker had for their mortgages

I should have paid off most of it and just kept a small amount which wouldn't garner enough interest to outweigh the insurance savings