survey contest. The first payment was 8/15/2006 I Currently have $5000 plus still on the loan. If I pay the loan of completly am I entitled to get money back for paying the loan off 2 years early. I trust the yahoo community I myself believe I am entitled but it is with American General Financial Services
2007-08-30 11:35:01 · 11 answers · asked by James D 1 in Business & Finance ➔ Personal Finance
probably not, but they may give you a credit for the interest that would have accrued.
2007-08-30 11:40:35 · answer #1 · answered by Nicole 3 · 0⤊ 1⤋
I also have a loan through American General, and in my contract there is no penalty for early pay off. So you should just be able to pay what you owe, not including all the years of interest.
Good Luck & Congratulations on the $25,000!
2007-08-30 19:50:11 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You need to call and ask for a pay off amount on your loan this will be the princiapal amount left on the loan and any accrued interest to date (from the last time you made a payment). The $8250 you quote is what the loan will cost you if you take 5 years to pay it off. Most Personal loans wont charge a penalty for paying off early.
2007-08-30 18:55:34 · answer #3 · answered by JB 3 · 0⤊ 1⤋
It depends on the contract. What did you agree to? I have a simple interest loan on my car. I can pay whatever I want as long as I make the minimum payment and each month I pay the monthly interest rate times the balance. Other loans I have had were set and there were penalties for paying it off early. Read and find out so that you know what you are doing. Never sign anything unless you understand what you are signing and never get a loan for 25% or a credit card. . .that's highway robbery. . . .
2007-08-30 18:40:34 · answer #4 · answered by towanda 7 · 0⤊ 1⤋
First of all, congrats for winning 25K. Thats awesome. When you pay off a loan, call the company for the pay off and they will give you teh amount of the principal. Simply pay that and get a letter from them confirming the balance on the loan is zero. American General loans are simple interest with no prepayment penalty. You won't get a credit back bu tthe amount you give them will be closer to 5k not 8k
2007-08-30 20:31:38 · answer #5 · answered by Ashley W 2 · 0⤊ 0⤋
You'll really have to check the fine print of the loan contract. Some loans offer a "pay off" amount that is greater than the original loan amount but less than the final amount adjusted for interest. Your interest rate is *really* high though, so you might be a little fuhocked, but hey, you won 25G.
2007-08-30 18:46:24 · answer #6 · answered by Yep 2 · 0⤊ 1⤋
No. The balance is just that. You owe $5000 and are not entitled any money back. Sounds like a bad loan if they made you start from $8250. Should have read the papework before you signed,bud.
2007-08-30 18:41:48 · answer #7 · answered by Mybal Zitch 3 · 0⤊ 1⤋
It depends on the contract you signed when you took out the loan. If you took it out for a particular time period (say, five years) then there may actually be penalties for early repayment. If not, then you won't have to pay off the future interest. You won't get money back for interest already paid, sorry.
2007-08-30 18:40:37 · answer #8 · answered by Jackson 2 · 0⤊ 1⤋
American General divides the interest evenly over the life of the loan, so as suggested, get the payoff amount and mail it in.
2007-08-30 23:31:28 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Absolutely ---pay it off and get out of debt---pay all your debt--- best investment is bail you self out of short term hi interest debt...stay out from under the creditors grasp...
2007-08-30 21:51:11 · answer #10 · answered by Gerald 6 · 0⤊ 0⤋
depends what the agreemant says == you may have early payment fee that will no allow you to do it!!! read the fine print!!!
2007-09-03 15:38:15 · answer #11 · answered by mister ed 7 · 0⤊ 0⤋