A smart & easy way to accelerate the payoff of your loan!
SmartNote was the first to offer biweekly debiting for auto loan customers. With no extra effort you can accelerate the payoff of your loan, accelerate equity, and in most instances reduce the amount of interest paid.
How it Works
The SmartNote debiting program provides the discipline and consistency to accelerate the payoff of your auto loan while providing the flexibility to work within your budget and your pay schedule. The key is a change from paying monthly to having a half payment debited every two weeks. When 26 half payments are debited each year, two extra half debits occur semi-annually. These “extra” debits are forwarded to your lender as “principal only” payments. Interest paid is based on the current principal balance, so the interest paid is consistently reduced and the loan payoff is accelerated.
Sounds Smart… But Is It Safe?
Electronically debited funds are transferred under strict regulations of the Federal Reserve and deposited into a federally-insured account. This account is maintained solely for the purpose of making SmartNote customer loan and principal payments.
Auto Loan Example
|Loan Example||Conventional||SmartNote Biweekly Program|
|Payment||$784.26 monthly||$392.13 biweekly|
|Term||72 months||Estimated payoff
|0 months||5 months|
The above estimate is based on a 7% interest rate, 7% Annual Percentage Rate, a deferred enrollment fee of $428, and the loan amount and payment requirements reflected above. In addition, there is also a $1.95 convenience fee charged per debit or an estimated $50.70 per year. The convenience fee calculation assumes 26 half payment debits per year. However, depending on the annual calendar and any adjustments that might be made to a customer’s debiting schedule, the number of debits could change. Your individual loan terms and debiting schedule would result in different accelerated payoff and equity results. See a complete listing of fees at Refunds and Program Fees.
For the smart way to pay your loan, rely on SmartNote.
SmartNote was the first to offer the convenience of biweekly debiting to auto loan customers. With no extra effort you can accelerate the payoff of your loan, accelerate equity, and in most instances reduce the total interest paid to your lender.
SmartNote Biweekly Debiting Program Benefits
- No need to refinance. You maintain your current lender and loan terms
- On the biweekly schedule, full monthly payments are split into affordable biweekly half debits
No hassle, convenient debiting and payment solution to fit your needs
- Flexible debiting schedule
- Set and forget: automatically generated debits and payment
- Simplified budgeting
- Early payoff notification
- Accelerated equity*
- Accelerated payoff*
- Reduced interest paid on your loan*
- ALL payments are tracked to guarantee receipt by your lender
- Timely returned debit notification (NSF) for those cosigning on loans
- Ability to manage multiple loans with multiple lenders at one time
- Unsurpassed service from professionals who care throughout the life of your loan
- Confidence in knowing that SmartNote continues to develop products to fit the auto industry’s ever-changing needs
* The accelerated equity and payoff are the result of SmartNote sending additional funds approximately every 6 months to your lender after the deferred enrollment fee has been satisfied. The additional funds are obtained through the estimated 26 half debits that will occur within one year. Interest reduction does not include plan fees. In some instances, fees may exceed interest reduction. You may be able to accelerate your equity by making extra payments on your loan directly to your lender without enrolling in the SmartNote Program. Your individual loan terms and debiting schedule would result in different accelerated payoff and equity results.