Avoid early payoff penalty?
I was brain storming and trying to figure out a way to avoid an early payoff penalty on my auto loan.
I have a little over than $1,000 left on the balance of the loan, and if I payoff before November 2008 I incur a penalty. The actual maturity date is not until May 2009.
I was thinking if I pay all but a dollar of the loan ( currently as it stands zero payment is due until my next payment date of November 2008). My interest would only be based on the $1 and I would avoid having to pay the early penalty fee. If I pay off the balance at November 2008 the early fee would drop off.
Would this be a fair assessment of leaving the $1 on the loan, in hopes of avoid the penalty fee.
Anita
