We are getting ready to buy a new minivan and would love to keep our payment at what we pay for our current car..if we do a 60 month loan, our payment will go up about 100 bucks...
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Well, it depends on how long you plan on keeping the vehicle. Since many people trade out of their vehicle after 3 years, a 6 year loan would make it difficult and costly to trade. However, if you are the kind of person who keeps vehicles for 5 years or more, then a 6 year loan can be beneficial if it helps to keep your budget in line.
I've bookmarked this site...
http://finance.lowratetoday.com/
All the best to you.
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It is not inherently a bad idea.
However, keep in mind, the longer you take to pay off anything, the more interest you pay. Also, some companies charge you a higher interest rate for a longer loan. (For example, their 4 year loans are at 6.25% and their 5 year loans are at 6.75%.)
You always need to consider the cost of the credit, not just the monthly payment. (For example, if you borrow $20K at 6.5% for four years, you will pay around $2750 in interest. If you take five years to pay the same $20K at the same rate, it will cost you close to $3500.)
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It is not a bad idea if you want to open your options. Knowing that the 72 months loan will allow you to afford the payment, I will definitively go for it.
But my advice will be to read the terms of the loan in order to make sure that there is no penalty and they will reduce the interest on the loan in case you do choose to pay off early.
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I think to use financing for anyhting other than to buy a house is a crappy idea.
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Not at all. Be sure they have no penalty for pre payment so if you want to pay a few months early or whatever that the option exists.