09-30-2013 08:24 PM
My scores are 703,708 and 693. I have a car loan from TFS and I currently owe $7500. The car has 91 000 miles and is a 2006 Scion XA. The Credit Union is only refinancing it because it's worth more than I owe. They checked the value with the VIN number and its worth $8100.
My current rate with TFS is 7.54 at $238 a month and CU is offering my around 3% for $218 a month. Is this deal worth it? I will be looking to sell the car in August and will be buying a brand new car.
09-30-2013 08:34 PM - edited 09-30-2013 08:36 PM
I think only you can answer that. Personally I wouldn't bother refinancing for a savings of $200: I'd rather have the longer tradeline rather than pickup a loan I'd be dumping in under a year but I'm much concerned with how my credit report looks than I am about that amount of money. I am also trying to stay squeaky clean as I'm going to be going through a mortgage process within the next six-twelve months, YMMV.
If $200 makes a material difference to you, then that may be a different story.
I think you'll see the forum is sort of split on this one: while it's definitely smart to save money in any way possible, this one just strikes me as too little too late personally; that said, there may be some upside in picking up the CU relationship as well if you haven't already established it.
09-30-2013 09:19 PM
09-30-2013 11:40 PM
I would suggest you refi to a shorter term. Your payment will jump, but you will have more equity when you are ready to sell next year. Or, if you decide to keep it. You will own it free and clear sooner.
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