BofA auto loan additional pmts

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MorgansRun
Posts: 191
Joined: Tue Jun 08, 2021 8:07 am

BofA auto loan additional pmts

Post by MorgansRun »

So in another thread I made the decision to pay off my car loan as soon as possible ( viewtopic.php?t=440556 )

Since this loan is at the wonderful thing that is Bank of America, they seem to make it increasingly difficult to apply additional payments to the principal amount. I either have to go into a branch to make the payment or mail a check with the statement so that I can check the box and write in the additional amount to apply towards the principal.

Are these my only options or is there some other wizardry that I can use?

I thought of a third option of saving those additional payment funds in an HYSA until I have the payoff amount and then go into the branch, but I have a feeling that either of the other two options would be more efficient from an interest-perspective.

Am I missing something or do I have to go back to the 90s and mail a check every month?
Valhalla7
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Joined: Fri Aug 30, 2024 8:42 pm

Re: BofA auto loan additional pmts

Post by Valhalla7 »

Refinance with a more friendly lender is an option. What’s your rate? Car refi’s are stupid easy and should be done as often as possible when rates are moving down.
Curb Fan
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Re: BofA auto loan additional pmts

Post by Curb Fan »

Are you sure about this? I paid off my BoA auto loan last year, but before I did so I was able to use Bill Pay to make higher payments online to lower the principal.
Topic Author
MorgansRun
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Re: BofA auto loan additional pmts

Post by MorgansRun »

Valhalla7 wrote: Tue Oct 08, 2024 11:24 am Refinance with a more friendly lender is an option. What’s your rate? Car refi’s are stupid easy and should be done as often as possible when rates are moving down.
My rate is 6.79%
Topic Author
MorgansRun
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Re: BofA auto loan additional pmts

Post by MorgansRun »

Curb Fan wrote: Tue Oct 08, 2024 11:31 am Are you sure about this? I paid off my BoA auto loan last year, but before I did so I was able to use Bill Pay to make higher payments online to lower the principal.
No, I'm not sure about this. Do you have a BofA checking account for BillPay?
Curb Fan
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Re: BofA auto loan additional pmts

Post by Curb Fan »

MorgansRun wrote: Tue Oct 08, 2024 11:47 am
Curb Fan wrote: Tue Oct 08, 2024 11:31 am Are you sure about this? I paid off my BoA auto loan last year, but before I did so I was able to use Bill Pay to make higher payments online to lower the principal.
No, I'm not sure about this. Do you have a BofA checking account for BillPay?
Sorry, I didn't see this notification until just now. No, I don't. I have it linked to an external bank account from a different institution.
Bogle_Bro
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Location: Frisco Texas, Mortgage Banker & Attorney

Re: BofA auto loan additional pmts

Post by Bogle_Bro »

Hmm I paid my boa car loan off in chunks online no problem :confused

I bank with boa though
Katietsu
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Re: BofA auto loan additional pmts

Post by Katietsu »

Now that auto loans are simple interest, I don’t think there is any need to specify principal only. I think you can just make whatever payments you want by ACH or transfer and the math will all come out the same in the end.
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cchrissyy
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Re: BofA auto loan additional pmts

Post by cchrissyy »

I have Wells Fargo and I've learned that additional payments get applied to principal if I do it as part of the monthly scheduled payment just for a larger amount or if I do it through a phone representative, what he say to make it go to additional principal. They do not go for principal if I simply log in and make a one-time payment. In that case it just applies to the next month and the month after that normal payment not principal. So I don't know if they see some useful to you at a different bank but I have been facing the same thing.
60-20-20 us-intl-bond
Topic Author
MorgansRun
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Re: BofA auto loan additional pmts

Post by MorgansRun »

Katietsu wrote: Tue Oct 15, 2024 10:15 pm Now that auto loans are simple interest, I don’t think there is any need to specify principal only. I think you can just make whatever payments you want by ACH or transfer and the math will all come out the same in the end.
I might need to play around with it to see if adding just $50 more would work. Who knows...either way this dang thing is getting paid off early.
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