I got a loan from Infiniti dealer and he offered me 7% for 60 months, which is high.
Can I paid off my loan earlier to avoid the interest? Or, even if I paid-off earlier, I still need to pay the interest together?

How if I find a better interest rate from another bank? Can I change the loan to them?

 

interest is acrued per month as you will be able to see in your pay-off amount. If I were you, at some point sooner than later, I would apply with another institution and try to refinance. So to answer you latter question....yes.

 

i would suggest you find a better loan first and not take one from the dealer. Usually credit unions offer great rates... if you're credit isn't that great then i would work on that before settling on a high interest rate...

as far as paying the loan earlier, it depends... some loans have an early pay off penalty so you should ask them about that. Don't get tempted into getting the car with that high an interest rate... waiting til you have better credit is better than refinancing cuz the rates for refinancing are higher than if you financed with good credit in the first place.

 

So I can paid-off any time with out paying the interest?

 

The way loans work is, you pay off the interest first, so your payments don't even go toward your car until the interest is paid off

 

You can credit any extra monies against your loan balance. Although it should go with out saying (to the loan agency), make sure you notate that the additional monies are to be used against your principal rather than interest.

 

I have to chime in on this one�
You can change loans and get a new car loan in most cases if the purchase was recent. Before you do this, some loans have pre-payment penalties (rare but you need to check this) the information is in your terms.
Also, you only pay interest for the # of days the balance is owed. i.e. day 1 to payoff.

Read below:

For a typical loan interest accrues daily. Here is an example today my balance is $20k I get charged interest for that days balance of $20k. Tomorrow the bank recieves my payment of $5k� ($20k - $5k= $15k). I get charged interest on the 2nd day based on the $15k balance. Since APR�s are yearly rates (365 days) take the APR and divide by 365 and multiply by .01 to get the daily rate. (7/365 * .01 = daily rate). Use the daily rate to multiply by that days balance... this gives you the interest charged for the day. This calculation is done daily throughout the loan period or until paid off.

The bigger the payment... the quicker the pay down� the shorter the term� and the lower the total interest paid... and more money saved. (Assuming there is not a pre-payment penalty). Pre-payment penalties are rare but they do exist.

Also, you don�t need to write-in apply to principle. This is assumed as all payments go to interest (for that month) first and the remainder goes to principle.

Yes, I am in finance

 

TRy Wells Fargo online! I was Quoted 4.89% for a 40K loan 60 months!! I went online last night and i had an answere by phone and Email by 9am this morning the Quote is good for 30 days with a 30 day extention!