Balloon payment?

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10-05-2001, 07:10 AM

slugnut

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Balloon payment?

Need some opinions, is it better to finance the car for 72mo. or do the balloon payment option? I'm leaning towards the balloon payment, but I'm wondering if I'll get screwed in the end. TIA.

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10-05-2001, 07:15 AM

ppith

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I think the best deal is to go through a bank that will let you refinance any time after making...

...lump sum payments when you can afford it.

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10-05-2001, 08:33 AM

LCP

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A true balloon payment loan is like any other consumer loan...

...in that you should be able to repay it at any time (but check first). Payments on most balloon payment loans are similar to what they would be on a 78-month purchase loan. Get whichever loan offers you the best interest rate. I would think the monthly payments of a 72-month or balloon payment loan would be very close to what payments would be on a 60-month loan that had a little lower interest rate.