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Valued Contributor
slyhouse08
Posts: 2,340
Registered: ‎04-08-2008
0

22% Interest Rate

I have a car loan with Crescent Bank & Trust...I just found out..my car loan interest rate is 22%...I have had my car since November 2006...I had to get some kind of reliable car..my score weren't even in the 500s'..I don't believe...I was 22 at the time...with a newborn 1 month old baby...the car is a 2006 Chevrolet Impala...when I bought it..it had 14,000 miles...purchase price was $13000.00...car payments are $359.26...

Should I be trying to get this car refinanced???...I'm planning on buying a house within the next six months...should I wait until after I get the house???...

Scores as of 5/3/08: 661, 618, 594
Contributor
Sushi
Posts: 166
Registered: ‎05-11-2008
0

Re: 22% Interest Rate



slyhouse08 wrote:
I have a car loan with Crescent Bank & Trust...I just found out..my car loan interest rate is 22%...I have had my car since November 2006...I had to get some kind of reliable car..my score weren't even in the 500s'..I don't believe...I was 22 at the time...with a newborn 1 month old baby...the car is a 2006 Chevrolet Impala...when I bought it..it had 14,000 miles...purchase price was $13000.00...car payments are $359.26...

Should I be trying to get this car refinanced???...I'm planning on buying a house within the next six months...should I wait until after I get the house???...

Scores as of 5/3/08: 661, 618, 594




Yikes that is high, I was paying less for a 0 mileage brand new car in 03. Hmmm IF you can find a place that pulls TU, I would try to refinance as you will save a lot more money in the long run. Wait and see what other people tell you though.
Valued Contributor
jaybee
Posts: 1,088
Registered: ‎03-18-2007
0

Re: 22% Interest Rate

I would refi asap, that way ur DTI will be lower also when purchasing the home. At least it will be 5-6 months old b the time you try to buy.

If you decide to wait a couple months, you should wait until after the home purchase.
If at first you don't succeed... hang up and try again!!
Valued Contributor
slyhouse08
Posts: 2,340
Registered: ‎04-08-2008
0

Re: 22% Interest Rate

I might not be able to refinance...I just looked at the trade in value of the car...it said it was between $8200-8900...I owe 10,000+...wouldn't I be upside down...and not able to refinance???...
Established Contributor
Takunda1
Posts: 512
Registered: ‎06-08-2007
0

Re: 22% Interest Rate



slyhouse08 wrote:
I might not be able to refinance...I just looked at the trade in value of the car...it said it was between $8200-8900...I owe 10,000+...wouldn't I be upside down...and not able to refinance???...

For that kind of negative equity you should be able to refi, its not that bad. I would certainly try to refi immediately. Thats just crazy APR for a car. Check with your bank, if you've been a long time customer, then check with the rgulars, COAF, ROADLOANS etc. Try a credit union as well.
Valued Contributor
slyhouse08
Posts: 2,340
Registered: ‎04-08-2008
0

Re: 22% Interest Rate

I just check another website...it said:

Trade in value- $12,019
Private Sell- $13,690
Dealer Retail- $14,951

I really want my house...and I was told to wait..because my TL's on credit...they are too new...my cal loan is the oldest...I don't want to affect that...DW step father works at the dealership...I'll call and see what he says...I think I might wait until after...I mean I have never been late...and can make the payments with no problems...but after being on myFICO for the last three months...I learned the value of interest rates...and I know I can do better..and be better off...but the lower monthly payment...will lower my DTI for the house loan...I don't know what to do...
Senior Contributor
MattH
Posts: 3,245
Registered: ‎04-03-2008
0

Re: 22% Interest Rate



slyhouse08 wrote:
I have a car loan with Crescent Bank & Trust...I just found out..my car loan interest rate is 22%...I have had my car since November 2006...I had to get some kind of reliable car..my score weren't even in the 500s'..I don't believe...I was 22 at the time...with a newborn 1 month old baby...the car is a 2006 Chevrolet Impala...when I bought it..it had 14,000 miles...purchase price was $13000.00...car payments are $359.26...

Should I be trying to get this car refinanced???...I'm planning on buying a house within the next six months...should I wait until after I get the house???...

Scores as of 5/3/08: 661, 618, 594




Yikes, is the lender owned by Tony Soprano!?!? Actually this far into your loan you won't get much benefit from refinancing because you have already paid most of the total interest you are going to pay. Instead, I suggest you try really really really hard to find ways of cutting spending then divide the extra dollars evenly between a savings account and paying down your debts. With a little self-discipline you can probably make a major dent in that loan over six months. Good luck. Take a look at http://www.daveramsey.com/ for some excellent advice on debt reduction, I don't agree with everything Dave says (not all debt is bad!) but he does have lots of sound advice.
TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Valued Contributor
slyhouse08
Posts: 2,340
Registered: ‎04-08-2008
0

Re: 22% Interest Rate

This is a 60 month loan...it has only been...18 months...I'm kinda lost...
Senior Contributor
MattH
Posts: 3,245
Registered: ‎04-03-2008
0

Re: 22% Interest Rate



slyhouse08 wrote:
This is a 60 month loan...it has only been...18 months...I'm kinda lost...




Hmm, 18 months into a 60-month loan at 22% you have already paid about half the total interest for the entire loan term. Go to www.bankrate.com and www.mtgprofessor.com for lots of useful calculating tools and play around with various scenarios -- you will find that making extra payments on the principal should save you much more than could any plausible refi. On houses refinancing can make more of a difference because the term is so much longer, but with car loans the term is much shorter.
TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Valued Contributor
1111mel
Posts: 1,060
Registered: ‎02-13-2008
0

Re: 22% Interest Rate

REFINANCE NOW, pay 6 MONTHS on the New Loan and apply for your mortgage the second that 6th payment posts. You only lose 2 months in your plans to buy which in the grand scheme of things is nothing.

You can refinance for as little as 7% for 48 months or better if you have a CU.
Mortgage Lenders Mid-Score 778 I AM A HOMEOWNER!!!!! 30 Year 5% Fixed Rate, closed on 3/18/09

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