Ford Options - refinancing balloon payment

[ryan9751]

I think it was a Docusign contract. If you don’t agree, don’t sign. IMO it’s all above board, no surprises or landmines.

Not saying really that there are surprises, just that my current contract says that if I buy out the car and refinance the balloon payment they can charge as high an APR as allowed by law.

I'd sleep easier having it in writing that something like that would not happen. (it would still be above board, they are only following their own contract)

And yes, if I didn't agree would not sign it, and expect it would be a cluster of a situation since the turn in date would have passed, but I'm counting on that not happening.

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[ChuckA]

Not saying really that there are surprises, just that my current contract says that if I buy out the car and refinance the balloon payment they can charge as high an APR as allowed by law.

I'd sleep easier having it in writing that something like that would not happen. (it would still be above board, they are only following their own contract)

And yes, if I didn't agree would not sign it, and expect it would be a cluster of a situation since the turn in date would have passed, but I'm counting on that not happening.

The language in my contract stated the same as yours, but my refinance rate was 2.25% being the same as my original contract.

If you turn in the car late they may charge a prorated monthly payment like they would if it was a lease. I had my concerns at first but my refinance went smoothly.

 

[hybrid2bev]

Not saying really that there are surprises, just that my current contract says that if I buy out the car and refinance the balloon payment they can charge as high an APR as allowed by law.

I'd sleep easier having it in writing that something like that would not happen. (it would still be above board, they are only following their own contract)

And yes, if I didn't agree would not sign it, and expect it would be a cluster of a situation since the turn in date would have passed, but I'm counting on that not happening.

The contract says it will be the LOWER of your contract rate or the max state rate. Since your contract rate is lower you'll keep the same interest rate on your refi.

 

[michaelmmegt]

I'm going through this process right now and waiting for my new contract. It seems there are multiple versions of the original contract because mine doesn't have the "lower of the APR" part.

 

[hybrid2bev]

I'm going through this process right now and waiting for my new contract. It seems there are multiple versions of the original contract because mine doesn't have the "lower of the APR" part.

Yes, there are multiple versions of the contract. In your case, in order to keep the monthly payment the same we cannot jack up the interest rate. The refi procedure is the same for both versions of the contract language, you'll get the same interest rate and same monthly payment.

 

[ChuckA]

Yes, there are multiple versions of the contract. In your case, in order to keep the monthly payment the same we cannot jack up the interest rate. The refi procedure is the same for both versions of the contract language, you'll get the same interest rate and same monthly payment.

Not correct. The original contract was based on the original finance amount. The refinance payment amount will be based on paying the balloon off within 36 month. Using the same interest rate, the payment amount will be different. Mine refinance payment was $130 monthly lower.

 

[silverelan]

I'm a bit more than a week out from my Balloon Payment due date. I called Ford Credit this Saturday morning and they said they needed to have received my written request to refinance the Balloon within 30 days of the due date...

The CSR said she would send an email to the department that handles these things and I should hear back in "14 Business Days".

I'm wondering if I should just call back on Monday. Despite reading the positive experiences on this thread, it's very stressful when it's my payment that is due.

 

[OH2AZ2OH]

I'm a bit more than a week out from my Balloon Payment due date. I called Ford Credit this Saturday morning and they said they needed to have received my written request to refinance the Balloon within 30 days of the due date...

The CSR said she would send an email to the department that handles these things and I should hear back in "14 Business Days".

I'm wondering if I should just call back on Monday. Despite reading the positive experiences on this thread, it's very stressful when it's my payment that is due.

Oh yeah, it was definitely stressful for me as well. But it all worked out fine. Ford Credit called me at least 3 times. They also have a vested interest in making it all work out.

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