By sending in $600 instead of the smaller amount that was scheduled to be due, is this causing a reduction in the balloon amount?
Not yet. But I will have a smaller principal balance remaining than what it was originally estimated to be by the end of the term.
It's in the Balloon details on the contract. Here's mine as an example, be sure to read your contract before signing.
It's in the Balloon details on the contract. Here's mine as an example, be sure to read your contract before signing.
Then this is not a standard installment contract. It sounds like your 'extra' is not being applied to principal, but is being treated as a partial pre-payment for the following month
If your assertion is correct, then paying more than the scheduled payment is not reducing the loan balance principal but just paying the scheduled interest before it is due. This sounds like a bad thing for loan holder but a great thing Ford Credit. I called Ford Credit the other day and asked if I paid all the principal except for the balloon payment if my monthly payment would be reduced to only the interest on the balloon payment. I did not get an answer that I could understand. I was told that the "system" may not be able to let me do what I wanted. I plan to call again because I might have just heard correctly.
Has anyone successfully got Ford Credit to lower their monthly Options payment with a principal-only payment without affecting the balloon payment? I've made 2 calls to Ford Credit and been put on hold for more than 10 minutes each time while the representative performs "research". It appears that getting a lower monthly payment by making a large principal-only payment is not done routinely. I've received different responses from Ford Credit from two different Ford Credit representatives. If I understood the second person I talked with correctly when I make a large principal-only payment (like $10K) Ford Credit will adjust my future monthly payments (called a rewrite of the loan) to reflect the reduced balance on the loan principal and not affect the final balloon payment. I am not really confident that this will occur as desired. Has anyone tried or successfully done this?
Ford Options is a simple interest loan like any other traditional simple interest loan in this regard. If you pay more than your normal monthly payment each month then your final payment (balloon)at the end of the term will be lower than it was originally estimated to be. I’m doing the same thing.
The process is being figured out. Allowing rescheduling of Options with a lump sum payment wasn’t anticipated to happen with any real frequency until next year when tax credit refunds start arriving. So anyone doing a lump sum ‘early’ should anticipate this to be a manual exception process.Has anyone successfully got Ford Credit to lower their monthly Options payment with a principal-only payment without affecting the balloon payment? I've made 2 calls to Ford Credit and been put on hold for more than 10 minutes each time while the representative performs "research". It appears that getting a lower monthly payment by making a large principal-only payment is not done routinely. I've received different responses from Ford Credit from two different Ford Credit representatives. If I understood the second person I talked with correctly when I make a large principal-only payment (like $10K) Ford Credit will adjust my future monthly payments (called a rewrite of the loan) to reflect the reduced balance on the loan principal and not affect the final balloon payment. I am not really confident that this will occur as desired. Has anyone tried or successfully done this?
Don't tell that guy that keeps insisting it's a lease that. ? ?
Okay, this explains why I am hearing a little delayed response from Ford Credit on my question. Thank you for the information.
Great to know! Thanks!
