It’s hard to know without enough information to figure out your amortization, but how much interest would you actually be saving by paying it down faster?
Remember that you pay more interest at the beginning of the loan and the amount goes down with each monthly payment. So depending on how much time is left in your loan, you might not be saving much.
Plus 4.99% is still a relatively low interest rate.
So you’re potentially losing the benefits of borrowing that money at a low rate, while not saving much money.
trsmith83 t1_j6fxlig wrote
Reply to I want to pay off my car. Should I stop adding to savings? by julianorts
It’s hard to know without enough information to figure out your amortization, but how much interest would you actually be saving by paying it down faster?
Remember that you pay more interest at the beginning of the loan and the amount goes down with each monthly payment. So depending on how much time is left in your loan, you might not be saving much.
Plus 4.99% is still a relatively low interest rate.
So you’re potentially losing the benefits of borrowing that money at a low rate, while not saving much money.