Dumb Refi Question But I'm Asking Anyway

[Anonymous]

Just applied with PenFed for a refinance on my car.  Used same HP as when I opened my account a couple of weeks ago (woo hoo).  The dumb questions is, do I take it or wait and try to refinance with DCU for a better rate after the beginning of the year (ch7 discharge will be 2 years in December)?  Not sure how good this rate really is, need advice on that too.

Current Loan Information:

• Car purchased 10/9/15 (don't even have the new registration from the state yet, lol)
• Current Loan Rate - 6.10%
• Payments $588.77 for 72 months

Refinanced Approved:

• 4.10%
• Payments $645.94 for 60 months

I guess what I'm really asking, is do you guys thing that the hassle of switching the loan over is worth it for the 2% and is this rate pretty good given my not so good credit?  The increased payment amount is not an issue at all. I've put it on a 45 day hold with them in order to decide. 

[fury1995]

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@Anonymous wrote:

Just applied with PenFed for a refinance on my car.  Used same HP as when I opened my account a couple of weeks ago (woo hoo).  The dumb questions is, do I take it or wait and try to refinance with DCU for a better rate after the beginning of the year (ch7 discharge will be 2 years in December)?  Not sure how good this rate really is, need advice on that too.

Current Loan Information:

• Car purchased 10/9/15 (don't even have the new registration from the state yet, lol)
• Current Loan Rate - 6.10%
• Payments $588.77 for 72 months

Refinanced Approved:

• 4.10%
• Payments $645.94 for 60 months

I guess what I'm really asking, is do you guys thing that the hassle of switching the loan over is worth it for the 2% and is this rate pretty good given my not so good credit?  The increased payment amount is not an issue at all. I've put it on a 45 day hold with them in order to decide. 

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Yes, and do it quickly. You should have done it when you applied for the new PenFed account and walked in with your PenFed check to start and avoided the other loan/account.

PenFed is very conservative to get in with (for credit products) and I'm kinda surprised you got the auto approval with a recent BK. Congrats and go get that refi!

[Anonymous]

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@fury1995 wrote:

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@Anonymous wrote:

Just applied with PenFed for a refinance on my car.  Used same HP as when I opened my account a couple of weeks ago (woo hoo).  The dumb questions is, do I take it or wait and try to refinance with DCU for a better rate after the beginning of the year (ch7 discharge will be 2 years in December)?  Not sure how good this rate really is, need advice on that too.

Current Loan Information:

• Car purchased 10/9/15 (don't even have the new registration from the state yet, lol)
• Current Loan Rate - 6.10%
• Payments $588.77 for 72 months

Refinanced Approved:

• 4.10%
• Payments $645.94 for 60 months

I guess what I'm really asking, is do you guys thing that the hassle of switching the loan over is worth it for the 2% and is this rate pretty good given my not so good credit?  The increased payment amount is not an issue at all. I've put it on a 45 day hold with them in order to decide. 

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Yes, and do it quickly. You should have done it when you applied for the new PenFed account and walked in with your PenFed check to start and avoided the other loan/account.

PenFed is very conservative to get in with (for credit products) and I'm kinda surprised you got the auto approval with a recent BK. Congrats and go get that refi!

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@I applied for the PenFed account after I got the car stuff figured out, just wanted in with them for the future.  Originally, I was happy with the 6% ish the CU offered me (next best was Cap1 @ 8.07%) and figured I'd refi once I hit the two year mark on my bk and try DCU. 

Fast forward, PenFed denied me a CC based on pyramiding debt (a girl has gotta try since it wasn't a HP, expected the denial) but not the bk, so I thought what the heck, lets try to refi and see what happens since I can take advantage of the original account HP.  I got an INSTANT APPROVAL, almost fell out of my chair because I was expecting an UW to have to review it.  Best part was, no sending in any income documentation or paperwork, forms, etc.  They also gave me the $500 thrifty account when I opened my checking, which shocked me too.  I've always heard they are conservative, so who knows?!?

The check was cut and mailed yesterday so I will get it today to take to my bank.  They were awesome and so helpful (had to call in, the online system had a weird glitch).  I can't say enough good things about them.  I'm feeling very lucky so far!

[fury1995]

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@Anonymous wrote:

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@fury1995 wrote:

---

@Anonymous wrote:

Just applied with PenFed for a refinance on my car.  Used same HP as when I opened my account a couple of weeks ago (woo hoo).  The dumb questions is, do I take it or wait and try to refinance with DCU for a better rate after the beginning of the year (ch7 discharge will be 2 years in December)?  Not sure how good this rate really is, need advice on that too.

Current Loan Information:

• Car purchased 10/9/15 (don't even have the new registration from the state yet, lol)
• Current Loan Rate - 6.10%
• Payments $588.77 for 72 months

Refinanced Approved:

• 4.10%
• Payments $645.94 for 60 months

I guess what I'm really asking, is do you guys thing that the hassle of switching the loan over is worth it for the 2% and is this rate pretty good given my not so good credit?  The increased payment amount is not an issue at all. I've put it on a 45 day hold with them in order to decide. 

---

Yes, and do it quickly. You should have done it when you applied for the new PenFed account and walked in with your PenFed check to start and avoided the other loan/account.

PenFed is very conservative to get in with (for credit products) and I'm kinda surprised you got the auto approval with a recent BK. Congrats and go get that refi!

---

@I applied for the PenFed account after I got the car stuff figured out, just wanted in with them for the future.  Originally, I was happy with the 6% ish the CU offered me (next best was Cap1 @ 8.07%) and figured I'd refi once I hit the two year mark on my bk and try DCU. 

Fast forward, PenFed denied me a CC based on pyramiding debt (a girl has gotta try since it wasn't a HP, expected the denial) but not the bk, so I thought what the heck, lets try to refi and see what happens since I can take advantage of the original account HP.  I got an INSTANT APPROVAL, almost fell out of my chair because I was expecting an UW to have to review it.  Best part was, no sending in any income documentation or paperwork, forms, etc.  They also gave me the $500 thrifty account when I opened my checking, which shocked me too.  I've always heard they are conservative, so who knows?!?

The check was cut and mailed yesterday so I will get it today to take to my bank.  They were awesome and so helpful (had to call in, the online system had a weird glitch).  I can't say enough good things about them.  I'm feeling very lucky so far!

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That's awesome! Congrats!

Also, I wouldn't be surprised if you are now included in the very elusive quarterly offers from PenFed.

[Anonymous]

I can only hope to get offers one day!!!


Uh oh, just brought the check and demand for title to my CU and they aren't sure how to process it, none of them have ever received a check for a refi before......

This isn't going to end well - thankfully I document everything and made copies at home. Will have to do a ton of follow-up on this one.

[fury1995]

They've never had someone payoff their car before? LOL!

It's the same as a payoff. I'm guessing the title is electronic. You should get a lien release letter instead.

[Anonymous]

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@fury1995 wrote:

They've never had someone payoff their car before? LOL!

It's the same as a payoff. I'm guessing the title is electronic. You should get a lien release letter instead.

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They never had a refinance by check before so didn't know how to proceed.  The first lady wanted to do a payoff and issue me the title.  Ummm, nope, its a refi, the title needs to go to PenFed via the document that you didn't read and gave back to me.

To make matters worse, the check wasn't cut for enough it was like $50 short so they deposited it into my account and withdrew what was needed to payoff the loan.  WELL, it made my account overdrawn by $14.38 (new account still getting direct deposit setup).  The lady DIDN'T tell me, I saw it online.  When I quesitoned it, she said, well I had to get the extra money from somewhere - well, how about you take if from the BIGGER savings balance or I write you a check to cover the difference.  I asked if I was going to get hit with a fee and she said no, not if I transfer the money today, so we will see.

Meanwhile I was chit chatting with the branch manager and she said my new rate was really good and wasn't surprised that I took the offer.  So she took my phone number and the document from PenFed and was faxing it over to the department that handles car loans so that the title process would go smoothly.  She said she would call me back if they need anything else or there was going to be an issue.

So I'm a little bit concerned, since PenFed says if everything isn't received "timely" they will change the loan into an unsecured personal loan at the highest APR available...ouch!!!!  I'll be tracking this to make sure it all goes well.  My last refinance was all done electronically, much easier.