Quote:
Originally Posted by euroconvert
Didn't you have to pay all the interest off of the GM loan, making your CU loan principle larger than your GM loan Principle was?
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Nope. The CU just paid off the whole amount to GM & and I now have a loan with them for the same principal amount but at a lower interest rate.
This is how it was explained to me and it is reflected the paperwork.
This is my first time doing this and I'm definitely no financial expert or anything anyway so this is a serious (aka not wise-ass) question so feel free to educate me (hopefully in the same manner, lol). But, if it was the other way, that you mentioned, why would any one ever bother doing it? As in, wouldn't that defeat the purpose of refinancing - that being to get a better interest rate/term/etc in order to end up owing
less money in total?