Re: Pay off Car or Pay into Homeloan !!
IMHO, There is a HUGE difference between a LUMP SUM SETTLEMENT and EARLY SETTLEMENT DUE TO LARGER MONTHLY PAYMENTS.
The bank has the right to incur a penalty on early settlement as a lump sum as the contract with you the lender is for a fixed period.
The bank takes the risk and in return gets a) interest payments b) a service fee.
If you settle, they might get their money back early, but they lose out on a) the compounded interest and b) the service fees for the balance of the loan period.
However, all things being equal, I suppose they'd also prefer their money back early so that they can move the funds to a new sucker........errrr customer.
4x4AG : GP0314-NW : EXPIRED
2012 Jeep Sahara Unlimited 3.6 V6
Ela Diablo: Land Rover S2A 109 PUP
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Ex: 1989 Land Rover 110 3.5 V8 County Station Wagon
Ex: 1996 Nissan Sani VG30 4x4 SW
Ex: 1984 Land Rover 110 V8 Pickup
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