12AX7 Posted May 27, 2010 Posted May 27, 2010 A general purpose loan is taken with a 4 year term. Is it possible to refinance the loan to extend the term to 5 years in order to reduce the required payments? In Sal's book, it seems to be possible but I don't see an example of how it's done. Would it seem reasonable to take the remaining balance and amortize the payments over the remaining term plus 1 additional year? I appreciate any suggestions.
rcline46 Posted May 27, 2010 Posted May 27, 2010 You have it correct, plus you (under trustee's direction) can also change the interest rate.
12AX7 Posted May 27, 2010 Author Posted May 27, 2010 Thanks. The interest rate would be the same 1 year into the loan (prime + 1%), but the payments go down about $20/week, which is a good thing.
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