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NFCU Auto Refi - declined

Valued Contributor

NFCU Auto Refi - declined

Super bummed.

 

I got a really high interest rate loan with DriveTime almost 2 years ago when I didn't know how easy it would be to fix my credit report, or even could fix it.

 

I was told that NFCU would finance 200% DTV refinances on vehicles that weren't very old and didn't have too many miles on them. 

 

They pulled TU Fico Auto 4 @ 672 and my income is 115k a year base + 10% annual bonus. DTI 6% (including current car loan) and sub $1000 rent.

 

Baddies: 1 medical collection, 2 years old, currently in dispute and in the process of starting a lawsuit on it, 6 late remarks on student loans from 2011.

 

Gonna go cry now.


EX08 659 EQ08 660 TU08 695 Starting: mid 300'sGoal: 700
11 REPLIES
Valued Contributor

Re: NFCU Auto Refi - declined

Please don't be discouraged! Stay the course! Look into DCU. Smiley Happy

Valued Contributor

Re: NFCU Auto Refi - declined


lowkeyorca wrote:

Super bummed.

 

I got a really high interest rate loan with DriveTime almost 2 years ago when I didn't know how easy it would be to fix my credit report, or even could fix it.

 

I was told that NFCU would finance 200% DTV refinances on vehicles that weren't very old and didn't have too many miles on them. 

 

They pulled TU Fico Auto 4 @ 672 and my income is 115k a year base + 10% annual bonus. DTI 6% (including current car loan) and sub $1000 rent.

 

Baddies: 1 medical collection, 2 years old, currently in dispute and in the process of starting a lawsuit on it, 6 late remarks on student loans from 2011.

 

Gonna go cry now.


No lender on the planet will finance 200% LTV on a car.  Best you will find is 120% and even with that there are always qualifiers like age and mileage.  NFCU is a great credit union and I am happy to have several products with them but they are not the only show in the world.  I suggest you share with us the car information payoff and current KBB value and perhaps we can assist you.  I would also provide your full set of credit scores for the best advice.  Based on the limited information it sounds like you have a LTV problem, if that is the case you will need to pay down the principle to get a refinance,  with your low DTI and good salary you should be able to make that work in a little bit of tiime and then do a refinance.  I was in a tough spot in 2014 and had to take a Santander loan at 12.57%, worked hard on my rebuild and made sure my LTV was acceptable and NFCU refinanced it 5 months later at 4.29% saving me about 7k in interest over the life of the loan.  With credit its best to not get too discouraged and put that energy into strategy, it will work out.

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
Valued Contributor

Re: NFCU Auto Refi - declined


workingfor850 wrote:

lowkeyorca wrote:

Super bummed.

 

I got a really high interest rate loan with DriveTime almost 2 years ago when I didn't know how easy it would be to fix my credit report, or even could fix it.

 

I was told that NFCU would finance 200% DTV refinances on vehicles that weren't very old and didn't have too many miles on them. 

 

They pulled TU Fico Auto 4 @ 672 and my income is 115k a year base + 10% annual bonus. DTI 6% (including current car loan) and sub $1000 rent.

 

Baddies: 1 medical collection, 2 years old, currently in dispute and in the process of starting a lawsuit on it, 6 late remarks on student loans from 2011.

 

Gonna go cry now.


No lender on the planet will finance 200% LTV on a car.  Best you will find is 120% and even with that there are always qualifiers like age and mileage.  NFCU is a great credit union and I am happy to have several products with them but they are not the only show in the world.  I suggest you share with us the car information payoff and current KBB value and perhaps we can assist you.  I would also provide your full set of credit scores for the best advice.  Based on the limited information it sounds like you have a LTV problem, if that is the case you will need to pay down the principle to get a refinance,  with your low DTI and good salary you should be able to make that work in a little bit of tiime and then do a refinance.  I was in a tough spot in 2014 and had to take a Santander loan at 12.57%, worked hard on my rebuild and made sure my LTV was acceptable and NFCU refinanced it 5 months later at 4.29% saving me about 7k in interest over the life of the loan.  With credit its best to not get too discouraged and put that energy into strategy, it will work out.


Someone else on the forums had said they refi'd a car with 121k miles owing 3x what the vehicle was worth. That's why I thought that NFCU would pick it up. I hope that's the reason for the denial, but I won't know until I get the letter.

 

Anyway, I'm hesitant to pull my scores for $30 to see if I can refi. My scores are roughly the same across the board, but the money I'm saving is currently going toward my mortgage downpayment, so it would be several months before I could bring the loan closer to LTV at 100%-125%.

 

It's a 2014 Ford Fiesta SE with 66k miles on it. The payoff is ~$13,350 and the NFCU rep told me the car is worth about $7,500. KBB lists $7,800.

 

The major thing is that my interest rate is 21%. It's killing me. Watching the DTV get worse everyday is hurting my actual well being. My payment is $454/mo, which is absurd in its own right, but lesson learned, I guess.


EX08 659 EQ08 660 TU08 695 Starting: mid 300'sGoal: 700
Community Leader
Super Contributor

Re: NFCU Auto Refi - declined

So sorry this happened to you, OP. There has to be a good path forward. Just hold on and others will respond to your post. Good luck to you! We are all here to learn and help.


Daily Drivers: Penfed Platinum Rewards; NFCU GoRewards; Discover; NASA Platinum Cash Rewards. EQ: 763 TU: 737 EX: 787
Valued Contributor

Re: NFCU Auto Refi - declined


lowkeyorca wrote:

workingfor850 wrote:

lowkeyorca wrote:

Super bummed.

 

I got a really high interest rate loan with DriveTime almost 2 years ago when I didn't know how easy it would be to fix my credit report, or even could fix it.

 

I was told that NFCU would finance 200% DTV refinances on vehicles that weren't very old and didn't have too many miles on them. 

 

They pulled TU Fico Auto 4 @ 672 and my income is 115k a year base + 10% annual bonus. DTI 6% (including current car loan) and sub $1000 rent.

 

Baddies: 1 medical collection, 2 years old, currently in dispute and in the process of starting a lawsuit on it, 6 late remarks on student loans from 2011.

 

Gonna go cry now.


No lender on the planet will finance 200% LTV on a car.  Best you will find is 120% and even with that there are always qualifiers like age and mileage.  NFCU is a great credit union and I am happy to have several products with them but they are not the only show in the world.  I suggest you share with us the car information payoff and current KBB value and perhaps we can assist you.  I would also provide your full set of credit scores for the best advice.  Based on the limited information it sounds like you have a LTV problem, if that is the case you will need to pay down the principle to get a refinance,  with your low DTI and good salary you should be able to make that work in a little bit of tiime and then do a refinance.  I was in a tough spot in 2014 and had to take a Santander loan at 12.57%, worked hard on my rebuild and made sure my LTV was acceptable and NFCU refinanced it 5 months later at 4.29% saving me about 7k in interest over the life of the loan.  With credit its best to not get too discouraged and put that energy into strategy, it will work out.


Someone else on the forums had said they refi'd a car with 121k miles owing 3x what the vehicle was worth. That's why I thought that NFCU would pick it up. I hope that's the reason for the denial, but I won't know until I get the letter.

 

Anyway, I'm hesitant to pull my scores for $30 to see if I can refi. My scores are roughly the same across the board, but the money I'm saving is currently going toward my mortgage downpayment, so it would be several months before I could bring the loan closer to LTV at 100%-125%.

 

It's a 2014 Ford Fiesta SE with 66k miles on it. The payoff is ~$13,350 and the NFCU rep told me the car is worth about $7,500. KBB lists $7,800.

 

The major thing is that my interest rate is 21%. It's killing me. Watching the DTV get worse everyday is hurting my actual well being. My payment is $454/mo, which is absurd in its own right, but lesson learned, I guess.


I am really sorry to see your in this situation, it isn't uncommon unfortnately because once your stuck with a subprime loan it is really tough to get out.   Is the payment causing the pain or the knowledge the you are getting robbed on interest?  

 

There are three ways you can deal with this, first is to make extra principle payments until you get to a LTV ratio that is closer to 100% and then refinance.  The second is consider a personal loan or CLOC, for 6k and use those dollars to pay down the principle and refinance the rest.  This results in two payments and the personal loan or CLOC will be fairly high interest so that might not work.  The third and my least favorite but nonetheless popular way to go is to find a new car that has a high rebate value and trade the Fiesta in and they can work their magic and roll the negative equity into the loan.   Since your interest is so high this might not be terrible because the amount you will waste on interest over the life of the loan might make this a better solution financially, thinking out loud it probably is.  Of course you want to watch the dealer closely because these are the deals that do all kinds of things on like mark up interest etc.  My guess is you can get qualified for a new car loan with NFCU or potentially get a good rate with a captive lender.  I follow the industry closely and I was just reading that in response to slowing car sales factories are increasing incentives.  

If you go the trade in/ rebate route make sure you can live with the car, APR and payment for a good 5 years because you will be in a negative equity situation for much of the life of the loan because when the factories give out big rebates it supresses the resale value of the model. If you can live with all of it for 5 years this is probably the best way to go but I caution you on those key points.

Gardening till 2018, Goal of 700's by the end of 2017
MyFico Scores Aug 2017: EQ 675 TU 695 EXP 698
Valued Contributor

Re: NFCU Auto Refi - declined


workingfor850 wrote:

lowkeyorca wrote:

workingfor850 wrote:

lowkeyorca wrote:

Super bummed.

 

I got a really high interest rate loan with DriveTime almost 2 years ago when I didn't know how easy it would be to fix my credit report, or even could fix it.

 

I was told that NFCU would finance 200% DTV refinances on vehicles that weren't very old and didn't have too many miles on them. 

 

They pulled TU Fico Auto 4 @ 672 and my income is 115k a year base + 10% annual bonus. DTI 6% (including current car loan) and sub $1000 rent.

 

Baddies: 1 medical collection, 2 years old, currently in dispute and in the process of starting a lawsuit on it, 6 late remarks on student loans from 2011.

 

Gonna go cry now.


No lender on the planet will finance 200% LTV on a car.  Best you will find is 120% and even with that there are always qualifiers like age and mileage.  NFCU is a great credit union and I am happy to have several products with them but they are not the only show in the world.  I suggest you share with us the car information payoff and current KBB value and perhaps we can assist you.  I would also provide your full set of credit scores for the best advice.  Based on the limited information it sounds like you have a LTV problem, if that is the case you will need to pay down the principle to get a refinance,  with your low DTI and good salary you should be able to make that work in a little bit of tiime and then do a refinance.  I was in a tough spot in 2014 and had to take a Santander loan at 12.57%, worked hard on my rebuild and made sure my LTV was acceptable and NFCU refinanced it 5 months later at 4.29% saving me about 7k in interest over the life of the loan.  With credit its best to not get too discouraged and put that energy into strategy, it will work out.


Someone else on the forums had said they refi'd a car with 121k miles owing 3x what the vehicle was worth. That's why I thought that NFCU would pick it up. I hope that's the reason for the denial, but I won't know until I get the letter.

 

Anyway, I'm hesitant to pull my scores for $30 to see if I can refi. My scores are roughly the same across the board, but the money I'm saving is currently going toward my mortgage downpayment, so it would be several months before I could bring the loan closer to LTV at 100%-125%.

 

It's a 2014 Ford Fiesta SE with 66k miles on it. The payoff is ~$13,350 and the NFCU rep told me the car is worth about $7,500. KBB lists $7,800.

 

The major thing is that my interest rate is 21%. It's killing me. Watching the DTV get worse everyday is hurting my actual well being. My payment is $454/mo, which is absurd in its own right, but lesson learned, I guess.


I am really sorry to see your in this situation, it isn't uncommon unfortnately because once your stuck with a subprime loan it is really tough to get out.   Is the payment causing the pain or the knowledge the you are getting robbed on interest?  

 

There are three ways you can deal with this, first is to make extra principle payments until you get to a LTV ratio that is closer to 100% and then refinance.  The second is consider a personal loan or CLOC, for 6k and use those dollars to pay down the principle and refinance the rest.  This results in two payments and the personal loan or CLOC will be fairly high interest so that might not work.  The third and my least favorite but nonetheless popular way to go is to find a new car that has a high rebate value and trade the Fiesta in and they can work their magic and roll the negative equity into the loan.   Since your interest is so high this might not be terrible because the amount you will waste on interest over the life of the loan might make this a better solution financially, thinking out loud it probably is.  Of course you want to watch the dealer closely because these are the deals that do all kinds of things on like mark up interest etc.  My guess is you can get qualified for a new car loan with NFCU or potentially get a good rate with a captive lender.  I follow the industry closely and I was just reading that in response to slowing car sales factories are increasing incentives.  

If you go the trade in/ rebate route make sure you can live with the car, APR and payment for a good 5 years because you will be in a negative equity situation for much of the life of the loan because when the factories give out big rebates it supresses the resale value of the model. If you can live with all of it for 5 years this is probably the best way to go but I caution you on those key points.


It's not causing me financial trouble, it's just the feeling of throwing money away that bothers me.

 

I already make extra principle payments, but it's just not enough to make much of a difference. I feel much better putting my extra money in savings towards my mortgage and my daughter's college education right now. 

 

I'll consider purchasing a new car, if it's going to save me money in the long run, it's probably wise. 

 

Thanks very much!


EX08 659 EQ08 660 TU08 695 Starting: mid 300'sGoal: 700
Frequent Contributor

Re: NFCU Auto Refi - declined

Which is going to save you more money? Putting extra money towards the car, or saving towards the house?  Seems to me that getting that car paid off at 21% is going to save you a lot of money over the life of the loan.

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Valued Contributor

Re: NFCU Auto Refi - declined


EAJuggalo wrote:

Which is going to save you more money? Putting extra money towards the car, or saving towards the house?  Seems to me that getting that car paid off at 21% is going to save you a lot of money over the life of the loan.


Putting toward the car would save me more money, but it is not an option. I have to be in a house by July 1st for personal reasons that cannot budge.

 

I have decided to just continue on the way things are for now, until I have my home downpayment secured, then I will pay down the loan to under 100% and refinance.


EX08 659 EQ08 660 TU08 695 Starting: mid 300'sGoal: 700
Valued Contributor

Re: NFCU Auto Refi - declined

If you're not willing to spend some cash to bring the LTV value back down, there's nothing we can tell you to make it magically better.



Starting scores: 552 EQ, 570 TU, 558 EX Current scores (9/29/17): 746 EQ 721 TU 719 EX