February 21, 2026, 06:19 AM
PHPaulAuto Loan Advice
I am 10 months into a 66 month loan
current balance $27K @ 5.74%
Cruising the Navy Federal site, it looks like they'll refi my '24 F250 with <3000 miles for 60 months @ 1.99%
This seems like a no-brainer to me, especially since (as I've been doing with the existing loan) I'll make an extra payment every other month or so.
Am I missing anything?
Be careful when following the masses. Sometimes the M is silent.
February 21, 2026, 06:24 AM
jprebbThat’s a fantastic rate but I couldn’t find anything close to that on the Navy Fed site. Is that a promotional rate for you?
JP
February 21, 2026, 06:39 AM
PHPaulWell, shit. I SWEAR I saw 1.99% but apparently that's old information. Looks like over 5% currently, which likely is not worth the effort, especially if there's an origination cost.
Be careful when following the masses. Sometimes the M is silent.
February 21, 2026, 08:08 AM
P250UA5Rates stuck right now, and I'm about to be back in it.
4.49 for 60 is about the best I've found, outside some dealer promotions on new cars.
Even then, it's more than I want to spend.
The Enemy's gate is down. February 21, 2026, 08:40 AM
SclassIf you can swing another $50 or $100 a month on the principle, that's your best bet for knocking down the interest you pay.
February 21, 2026, 09:19 AM
PHPaulquote:
Originally posted by Sclass:
If you can swing another $50 or $100 a month on the principle, that's your best bet for knocking down the interest you pay.
I make an extra payment roughly every other month, in the full amount, applied to the principal. Plus I just applied my IRS return to the principal equaling roughly 2 extra payments.
Much as I hate giving Uncle Sugar an interest free loan, I've never quite managed to adjust my withholding to achieve a zero sum game. Plus DJT's changes to the laws gave me a nice little bonus, being of the chronologically challenged persuasion. God Bless Him!
Be careful when following the masses. Sometimes the M is silent.
February 21, 2026, 12:01 PM
Sclassquote:
Originally posted by PHPaul:
quote:
Originally posted by Sclass:
If you can swing another $50 or $100 a month on the principle, that's your best bet for knocking down the interest you pay.
I make an extra payment roughly every other month, in the full amount, applied to the principal. Plus I just applied my IRS return to the principal equaling roughly 2 extra payments.
Much as I hate giving Uncle Sugar an interest free loan, I've never quite managed to adjust my withholding to achieve a zero sum game. Plus DJT's changes to the laws gave me a nice little bonus, being of the chronologically challenged persuasion. God Bless Him!
Awesome! At that rate you won't have the loan long enough to worry about a re-fi.
February 21, 2026, 05:37 PM
220-9erThose extra payments to principal add up quickly since they don't adjust the monthly payment to reflect the lower balance each month.
That means even on the normal monthly payments, you are in effect making some extra towards principal.
Nothing like the feeling of not owing anything and having everything paid off.
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Avoid buying ChiCom/CCP products whenever possible.
February 23, 2026, 09:07 AM
WarhorseWe bought a brand new 2025 Cadilac XT5 in September 2025. Financed with Cadilac Financial, and they sent a statement showing how much we paid in interest that year. Had our taxes done a few weeks ago, tax man used that statement to deduct the interest paid from our taxable income. Thank you Mr. Trump for that, and for the $6000 deduction for everyone 65 and older.
My point being, interest on some vehicles is now tax deductible.
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NRA Life Member, MGO Annual Member
February 23, 2026, 09:28 AM
nhracecraft^^ Part of the Big Beautiful Bill. New vehicles, assembled in the USA, greater than 50% personal use qualify. Up to $10K in interest is deductible and the deduction is reduced/phases out based on MAGI (Modified Adjustable Gross Income) $100,000 to $150,000 ($200,000 to $250,000 for joint filers). Age has nothing to do with it. Deduction is claimed on Schedule 1-A.
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February 23, 2026, 05:44 PM
patwSadly not all lenders will apply the extra money you pay them without you stating to do it, which is insane. Another way to make their money off you.
February 23, 2026, 05:46 PM
hrcjonI'm sure what you say may be true, but then what do they do with it, escrow it?
“So in war, the way is to avoid what is strong, and strike at what is weak.”
February 23, 2026, 07:17 PM
RogueJSKIf it's not specifically noted to be put towards principal, some lenders will apply it towards the next month's payment.
Effectively prepaying some or all of the next month's interest+principal payment rather than putting it all towards paying down principal to reduce future interest.
February 24, 2026, 04:18 AM
PHPaulI was VERY clear about it being applied to the principal, and state it on the memo line of the check.
Plus, it's a credit union loan and (at least in my experience) they're less prone to shenanigans than say...Wells Fargo.
Be careful when following the masses. Sometimes the M is silent.
February 24, 2026, 10:02 AM
V-Tailquote:
Originally posted by RogueJSK:
If it's not specifically noted to be put towards principal, some lenders will apply it towards the next month's payment.
Effectively prepaying some or all of the next month's interest+principal payment rather than putting it all towards paying down principal to reduce future interest.
I had some rather heated discussions with Chase bank about that, when they held my mortgage.
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