If I make an extra payment to Honda Financial (this is for a car purchase loan, not a lease) and apply it toward the loan principal, will it lower my monthly payment for the rest of the term, or will it shorten the term and keep the monthly payment the same?
I don't feel like sitting on hold with HF at the moment, so if your answer is to call them, please don't bother posting. I'm hoping someone has already done this and knows the answer. Thanks!
@Alex - I saw that article, too. Honda actually gives me the option when I make an additional payment to apply it toward the principal or not. Based on their wording (which is kinda vague), I'm thinking they keep my payment the same, which will end the loan sooner. I can call them to see if they would recalculate my payments over the rest of the original term, but I doubt they'll do it since that's akin to refinancing. When I pay extra toward my student loan principal, my payments are automatically adjusted, while the terms stays the same, but apparently it's just the opposite in the auto finance world. :}
I don't feel like sitting on hold with HF at the moment, so if your answer is to call them, please don't bother posting. I'm hoping someone has already done this and knows the answer. Thanks!
@Alex - I saw that article, too. Honda actually gives me the option when I make an additional payment to apply it toward the principal or not. Based on their wording (which is kinda vague), I'm thinking they keep my payment the same, which will end the loan sooner. I can call them to see if they would recalculate my payments over the rest of the original term, but I doubt they'll do it since that's akin to refinancing. When I pay extra toward my student loan principal, my payments are automatically adjusted, while the terms stays the same, but apparently it's just the opposite in the auto finance world. :}