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NEWBIE/ REFINANCE QUESTION

Regular Contributor

NEWBIE/ REFINANCE QUESTION

I JUST BOUGHT A 2013 CHEVY CRUZE AFTER TRADING IN MY 06 IMPALA. I STILL OWED ABOUT 8500 ON IT BUT THEY BOUGHT IT FOR 7000 SO I WAS ABOUT 1500 UPSIDE DOWN.. WHICH ISNT TOO BAD BUT SINCE MY SCORE WAS AT A 606 AT THE TIME OF PURCHASE MY PAYMENTS ARE $398 AT 13% INTEREST. AND SINCE IM TRYING TO BUY A HOUSE IN MARCH 2014 I WANT TO CUT COSTS AS MUCH AS POSSIBLE...SO SINCE MY SCORES ARE HIGHER WOULD IT EVEN BE PPOSSIBLE TO REFINANCE AROUND OCTOBER AND GET MY INTEREST RATES ANYWHERE BETWEEN 3% - 6%... IM TRYING TO GET MY PAYMENTS AROUND $250-$300 A MONTH...

 

PLEASE HELP!!!!!

Message 1 of 9
8 REPLIES
Epic Contributor

Re: NEWBIE/ REFINANCE QUESTION


cazz wrote:

I JUST BOUGHT A 2013 CHEVY CRUZE AFTER TRADING IN MY 06 IMPALA. I STILL OWED ABOUT 8500 ON IT BUT THEY BOUGHT IT FOR 7000 SO I WAS ABOUT 1500 UPSIDE DOWN.. WHICH ISNT TOO BAD BUT SINCE MY SCORE WAS AT A 606 AT THE TIME OF PURCHASE MY PAYMENTS ARE $398 AT 13% INTEREST. AND SINCE IM TRYING TO BUY A HOUSE IN MARCH 2014 I WANT TO CUT COSTS AS MUCH AS POSSIBLE...SO SINCE MY SCORES ARE HIGHER WOULD IT EVEN BE PPOSSIBLE TO REFINANCE AROUND OCTOBER AND GET MY INTEREST RATES ANYWHERE BETWEEN 3% - 6%... IM TRYING TO GET MY PAYMENTS AROUND $250-$300 A MONTH...

 

PLEASE HELP!!!!!


Who financed the Cruze at 13%? is that 60 or 72 months?

Did you put anything down or did you finance the negative equity and tax/title/etc. on new car?

total financed in end and car original sticker before anything done?

Message 2 of 9
Valued Contributor

Re: NEWBIE/ REFINANCE QUESTION


cazz wrote:

I JUST BOUGHT A 2013 CHEVY CRUZE AFTER TRADING IN MY 06 IMPALA. I STILL OWED ABOUT 8500 ON IT BUT THEY BOUGHT IT FOR 7000 SO I WAS ABOUT 1500 UPSIDE DOWN.. WHICH ISNT TOO BAD BUT SINCE MY SCORE WAS AT A 606 AT THE TIME OF PURCHASE MY PAYMENTS ARE $398 AT 13% INTEREST. AND SINCE IM TRYING TO BUY A HOUSE IN MARCH 2014 I WANT TO CUT COSTS AS MUCH AS POSSIBLE...SO SINCE MY SCORES ARE HIGHER WOULD IT EVEN BE PPOSSIBLE TO REFINANCE AROUND OCTOBER AND GET MY INTEREST RATES ANYWHERE BETWEEN 3% - 6%... IM TRYING TO GET MY PAYMENTS AROUND $250-$300 A MONTH...

 

PLEASE HELP!!!!!


Need way more information.  What are your scores now?  As CreditAddict asked, how much did you put down.  Since you rolled negative equity into the new one youu are going to have a hard time meeting LTV ratios on a refinance.  You need to start making some LARGE payments on that car to get it knocked down below blue book if you want to be able to refinance it.  

Starting a whole new chapter
Message 3 of 9
Regular Contributor

Re: NEWBIE/ REFINANCE QUESTION

My score is at 680 it was 606 when i bought the car i got 13% interest and i would like to get to 9% or less.. my negative equity is less than 1000 now..im really just trying to get my debt to income lowered before i buy a home and i have no cc debt so my only payment is my car. My payments on my old car were 262 and the new payments are 398... is it possible to refinance before November?

Message 4 of 9
Epic Contributor

Re: NEWBIE/ REFINANCE QUESTION


cazz wrote:

My score is at 680 it was 606 when i bought the car i got 13% interest and i would like to get to 9% or less.. my negative equity is less than 1000 now..im really just trying to get my debt to income lowered before i buy a home and i have no cc debt so my only payment is my car. My payments on my old car were 262 and the new payments are 398... is it possible to refinance before November?


Who is the loan through?

I would apply online for a refi with Capital One.

do you have a local credit union around you?

Message 5 of 9
Regular Contributor

Re: NEWBIE/ REFINANCE QUESTION

My loan is with ally financial. There are credit unions around me but im not apart of any of them and they also use transunion which is my lowest score. My last car loan was with capital one and im not sure how my relationship is with them currently lol but i just didnt know if it would hurt or harm my credit score being that i plan to apply for a mortgage in Novemer or december

Message 6 of 9
Epic Contributor

Re: NEWBIE/ REFINANCE QUESTION


cazz wrote:

My loan is with ally financial. There are credit unions around me but im not apart of any of them and they also use transunion which is my lowest score. My last car loan was with capital one and im not sure how my relationship is with them currently lol but i just didnt know if it would hurt or harm my credit score being that i plan to apply for a mortgage in Novemer or december


oh, think the rule of thumb is usually 6 months before mortgage... so yeah maybe not score wise but they could be grouchy about all the INQ!

Message 7 of 9
Regular Contributor

Re: NEWBIE/ REFINANCE QUESTION

Oh yuck lol but thank you

Message 8 of 9
Moderator

Re: NEWBIE/ REFINANCE QUESTION

It's no issue at all if you do it now.

You just have to write a letter of explanation regarding the INQ's for the mortgage people when you make application.

 

You want to reduce that payment now so it helps your DTI when you qualify for a mortgage. Depending upon your income the  $398/month may or may not affect the amount of house you can buy.

Message 9 of 9