12-11-2009, 09:53 PM
discipline is the name of the game; if possible, do not extend the term of the loan, otherwise the temptation to pay less each month will likely end up costing you more if you're in it for the long haul. lowering the rate is terrific, but to realize its advantage, you should take a comparable, or shorter, loan term, OR have the discipline to pay at least as much each month to be the equivalent of that comparable or shorter loan term. that's it; lower rate = better for you if you have discipline to realize its benefit. also check to make sure there are no draconian penalties that can bite you in the butt... such as being on vacation, or dealing with a sick relative that causes a late payment triggering a default interest rate for the rest of your life. IOW just make sure that you can live with any ill effects should any penalty clause ever be invoked; if any penalty clause makes you think you couldn't/wouldn't want to deal with it; negotiate it out, or down, or do not take the loan. good luck.