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Member
Posts: 20
Registered: ‎01-15-2014
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New Job, 50% increase in Salary...Can I refi?

Hi all,

 

So I bought a 2014 Mazda 3 and I just made the first month's payment today and I owe 22,600 on it (25,960 MSRP; 28,000 Dealer Markup) (5.9% APR for 72 months)

 

Well, I just signed a new job offer today that is going to literally increase my salary by 50%, which will bring my current DTI to 10% INCLUDING the current car payment.

 

If you read my other threads, you would know that I have a decent amount of debt ~7k in credit cards and loans. What I would like to do is pay $1,500 a month on this for 3 months and then once my utilization is below 50%, I would like to try to refinance for a 2-3% loan with a shorter term (hopefully 48 months).

 

I guess my question is...how much does your income factor in these types of decisions? Where I qualified on my salary of 40k before, you would think a salary of 60k with no increase of cost of living would significantly improve my chances. However, my credit is low because of the new loan (600-ish) and I doubt, even with payments it will be above 700 or so for at least another year or more.

 

Any thoughts or ancedotes?

Epic Contributor
Posts: 23,754
Registered: ‎10-23-2007
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Re: New Job, 50% increase in Salary...Can I refi?


oceanbay wrote:

Hi all,

 

So I bought a 2014 Mazda 3 and I just made the first month's payment today and I owe 22,600 on it (25,960 MSRP; 28,000 Dealer Markup) (5.9% APR for 72 months)

 

Well, I just signed a new job offer today that is going to literally increase my salary by 50%, which will bring my current DTI to 10% INCLUDING the current car payment.

 

If you read my other threads, you would know that I have a decent amount of debt ~7k in credit cards and loans. What I would like to do is pay $1,500 a month on this for 3 months and then once my utilization is below 50%, I would like to try to refinance for a 2-3% loan with a shorter term (hopefully 48 months).

 

I guess my question is...how much does your income factor in these types of decisions? Where I qualified on my salary of 40k before, you would think a salary of 60k with no increase of cost of living would significantly improve my chances. However, my credit is low because of the new loan (600-ish) and I doubt, even with payments it will be above 700 or so for at least another year or more.

 

Any thoughts or ancedotes?


If the DTI works out on $25k income, it's not going to matter if you have $50k in income.  It's going to go more towards your credit score and greater credit picture and with some auto history, your auto enhanced fico should go up but to refi you need to start looking at credit unions you qualify to join because that is the only place I could see you getting refi'd to shorten loan and bring down the rate.

DCU is a big favorite on the board because of the possible 1.24% rate

I like Burbank City Credit Union Also

but not sure where you live.

Fico Scores: EQ- 662., TU 684 Barclay, EX 700 (3/21/15)

You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
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Valued Contributor
Posts: 1,288
Registered: ‎02-12-2014
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Re: New Job, 50% increase in Salary...Can I refi?

For mid-600s, another lender you could try is Rate Genius. I've heard of pretty good results with them in that score range. DCU needs a 675+ for their 1.24% rate. For midrange like 650-674, it's ~4%. I think they outright reject below 620 or so.

As I am very busy with work these days, I am participating in the forums less than I would like to. Please feel free to email me directly remembermyfico //at// gmail /dot/ com if you would like me to respond to a specific question you have.
Valued Member
Posts: 55
Registered: ‎12-07-2011
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Re: New Job, 50% increase in Salary...Can I refi?

What trim of the 3 did you get? I purchased a 2014 Mazda 3 i grand touring in January. Anyway look into chase, my loan is 2.39 for 60 months. Not bad considering my credit was 680 when they pulled.

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