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Bi-weekly Payments for an Auto Loan |
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This calculator shows you possible savings by using an accelerated bi-weekly payment on your auto loan. By paying half of your monthly payment every two weeks, each year your auto loan company will receive the equivalent of 13 monthly payments instead of 12. This simple technique can shave time off your auto loan and could save you hundreds or even thousands of dollars in interest.
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Definitions
- Bi-weekly payments
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Bi-weekly savings are achieved by simply paying half of your monthly auto loan payment every two weeks and making 1.5 times your monthly auto loan payment every sixth month. By the end of each year you would have paid the equivalent of one extra monthly payment. This additional
amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands of dollars in interest and take years off of your auto loan.
- Original loan amount
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The original total dollar amount for this auto loan.
- Interest rate
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The interest rate on this auto loan.
- Original loan term
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The number of months over which you would repay this loan if you made your normal monthly payment.
- First payment date
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The date your auto loan started. We will use this date to calculate the time and balance remaining on your loan.
- Monthly Prepayment amount (optional)
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Prepayment increases your savings even more. An additional payment is strictly optional. If you are also prepaying, please include your monthly prepayment amount. With the bi-weekly program ˝ of this amount will be debited every two weeks.
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