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BoboBrazil
Posts: 3
Registered: ‎06-14-2007
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How important is ltv for a refi?

I have pretty low scores right now(probably between 550-600 and I got stuck with a Santander loan a few months ago at a ridiculous 18% apr. I'm trying to refi at a couple of places right now like NFCU, Capital One,  and I also went through lendingtree, but I'm trying to figure out if it's my bad score getting me declined or the ltv of the car(2500 above clean trade in value is what I owe right now). If I got my ltv to equal to clean trade would I have a better shot of getting approved?

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Revelate
Posts: 9,751
Registered: ‎12-30-2011
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Re: How important is ltv for a refi?


BoboBrazil wrote:

I have pretty low scores right now(probably between 550-600 and I got stuck with a Santander loan a few months ago at a ridiculous 18% apr. I'm trying to refi at a couple of places right now like NFCU, Capital One,  and I also went through lendingtree, but I'm trying to figure out if it's my bad score getting me declined or the ltv of the car(2500 above clean trade in value is what I owe right now). If I got my ltv to equal to clean trade would I have a better shot of getting approved?


Almost certainly; however, if NFCU isn't playing ball, I'd call and ask.  

 

Capital One is hit or miss, and LendingTree with those scores is likely going to dump you down into the Roadloans/Santander category to begin with.  Also I think your approval chances will go up when your current loan hits the six month mark, but there's no real need to wait that long.

 

I will say though, with an 18% loan it's unlikely your savings APR is getting anywhere close to that, so it's worthwhile to hammer the balance more quickly regardless as even Santander to my knowledge is a simple interest loan.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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