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paying off bank loan before expiry date

  • 14-04-2007 12:25am
    #1
    lola_run
    Closed Accounts Posts: 311 ✭✭


    I currently have a loan of about 1000 euro that expires in February 2009. Would I save any money by paying the loan off before that date?

    The APR is 8.9%. Is that a good rate?


Comments

  • #2
    BuffyBot
    Registered Users, Registered Users 2 Posts: 24,924 ✭✭✭✭BuffyBot


    The rate is relatively good.

    As for whether you will save, if it's fixed rate loan you may be charged a fee for making larger repayments/earlier repayments. You'ld need to check with your loan provider as to what that is exactly.

    It's quite likely you will save something by paying it off early, even with the fee. But to find out if it's worth it, you need to contact your lending provider and do your figures.


  • #3
    wexdub
    Closed Accounts Posts: 6 ✭wexdub


    lola_run wrote:
    I currently have a loan of about 1000 euro that expires in February 2009. Would I save any money by paying the loan off before that date?

    The APR is 8.9%. Is that a good rate?
    not sure about rate but if u pay of now and say you wanted a loan again u would have to go through a lot of hassle again to get a new loan if you have the money to pay if loan leaveit in ac if you needed a bigger loan you could top it up rather than go over a load of hassle again i did that last year paid of my mortage (small) and took out a mortage this year had to pay legals fee of nearly 3.000e to go through it all again i shuld just reduce it and top it up saving time and money


  • #4
    lola_run
    Closed Accounts Posts: 311 ✭✭lola_run


    wexdub wrote:
    not sure about rate but if u pay of now and say you wanted a loan again u would have to go through a lot of hassle again to get a new loan if you have the money to pay if loan leaveit in ac if you needed a bigger loan you could top it up rather than go over a load of hassle again i did that last year paid of my mortage (small) and took out a mortage this year had to pay legals fee of nearly 3.000e to go through it all again i shuld just reduce it and top it up saving time and money

    Yes, I know what you mean. In fact, I already topped up this loan and it's certainly handy to have that ability. :-)

    I only wanted to clear off the loan as I thought it might be better for my credit rating, if ever I want to get a mortgage from this bank. But I guess you don't have to get a mortgage from the same bank you've always been with anyway?


  • #5
    RainyDay
    Closed Accounts Posts: 6,925 ✭✭✭RainyDay


    lola_run wrote:
    I only wanted to clear off the loan as I thought it might be better for my credit rating
    Forget your credit rating - Clear the loan early to save on interest payments if you have the cash available.


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