essexcredit charges $459 loan fee

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martipr wrote:
I financed through Essex a few years ago and paid a loan fee. I don't remember how much but at the time I checked everything out and found that their interest rate was so much lower than I could find elsewhere that my overall cost was much lower even with the fee.

Same here, and I just closed my loan a few weeks ago. As I have always said, the only thing that matters is the bottom line - not what fees you pay and what they call them (all immaterial). Bottom Line!

You should RUN not walk to your nearest bank (your own) or Credit union and ditch this Essex. Shop around and compare and closing costs, simple interest and fees should all be some of your first questions.

I financed through Essex a few years ago and paid a loan fee. I don't remember how much but at the time I checked everything out and found that their interest rate was so much lower than I could find elsewhere that my overall cost was much lower even with the fee.

To answer your question:
Two thigns

First: At an auto dealer (INCLUDING RV Dealers) EVERYTHING can be negotiated except the direction the sales man will look, sadly as you walk out the door having NOT signed on the line.

Second.. Charges added AFTER you sign.. May not be legal (NOTE May or may not applies).. Consider asking Department of motor vehicles ifitis..Assuming it happened that way.

I never pay loan origination, loan closing, loan anything fees to any loan entity. Don't pay doc fees either. You said you have excellent credit, so just say no and tell them to forget the loan. Go somewhere else. Plenty of loan entities out there. $27K for 10 years at 4.59%??? You're paying a LOT of interest.

Ah I see. You're were assuming equal monthly payments.

"This fee, if expressed as interest on your loan, would be 4.75%!!!!!"

That is the quote that confused me. I think the quote would have been better if it said "This fee, if expressed as interest on your loan, would add about .3 percentage points to the loan percentage rate." That may not be worth 5 exclamation points. :)

And really that would only be if the OP paid the loan fee upfront. If rolled into the loan, the interest would increase to $6,835.

fj12ryder wrote:
How can you figure the total interest without knowing the yearly/monthly payment amount? Higher payments toward the principal initially will lower the total interest paid.

What "Would actually be closer to 4.9%"? And what is Delta?

Inquiring minds want to know. :)

Go to any payment calculator and use the given information the OP provided (4.59%, $27,000, 10 years). If you only made the required payments (i.e. no additional principle), you will have paid $6,721 in interest over the life of the loan. Adding in the $459 loan fee nets $7,180.

If you use the same information, only substituting the interest rate for 4.9% and no loan fee would be $7,209. So you can see where the lower interest rate plus the fee is the approximately the same as paying a higher rate.

Delta = change

How can you figure the total interest without knowing the yearly/monthly payment amount? Higher payments toward the principal initially will lower the total interest paid.

What "Would actually be closer to 4.9%"? And what is Delta?

Inquiring minds want to know. :)