If i would like to lower my car loan APR from 9% to about 4% and it is possible should I do it? Will this keep my monthly payment same but I pay more on my loan than interest? Or I’m better off refinancing for another 5year plan to lower my payment and APR to 5%?
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Any loan that has a lower APR and a faster repayment period will save you money.
The only thing that would change that conclusion is if you have a 401k or other retirement savings plan at work and you are not contributing the maximum you can to such a plan. If your budget is so tight that you are not in this plan or only contributing a little, then I would refinance to the lower car payment and use the savings to increase your retirement account.
You are on the right track, though. 9% APR is too high and you should get rid of it if you can.