Car payments

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Reposting from adv

>Picture is not related

Hey /adv/, I am currently in a situation where it might benefit my mom (who I currently live with).

My mother did not have a car after it being repo'd a couple years ago. I learned that the car is owed around 14 grand. Here's the kicker.

>18% interest
>340 payment (10 fee online payment + 330 for the actual car)
[A note, in one year, only 700 was paid to the actual car, the rest went to the interest.]


I looked into this situation, and found out that the car is under my brothers name since he had the better credit score. However the contract had this kept up.


We tried getting in contact with the dealership and the person who ripped my mother off, but the bank has the contract so not much we can do about this.


Until, my brother recently spoke to the bank about a deal in order to at least change the interest rate.

Here's the offer.
>pay 1500 by sept 4th, and the bank will lower the interest rate from 18% to 5% and the car payment will be from 330 to 265 a month

My mother does not make a lot, so she could definitely benefit from this offer. At first glance it does sound nice. But, she doesn't have the money to pay it.

My brother offered to chip in 500, where she needs to put in 1000. Knowing this, I'm planning on putting in 600, where she needs to cover 400 (to which she says she can).


I spoke to a trusted family friend's parents, and they told me to ask these questions.

>Is the bank legitimate? (It is)
>Does the 1500 go towards principal on the loan, or the interest.
>Does it change the length of the loan or is the same amount of time she has left.
>Are they going to be charging her any additional fees or taxes?
>How much time is left on the loan now?