Refinancing - Would I be a fool?

[cassie3783]

To pass this up?

I have a 2011 Honda Accord that I financed (approx. 16K) with an 8% interest rate & currently pay $350 a month with 48 months left on the loan.

I called the Credit Union I have an account w/ just to get an estimate of interest rates & payments they could give me.

The payoff amount right now is $14k & my CU could give me a 3.74% interest rate for 36 months, putting my payments at $413/mo.

Yes, the payments are higher than they currently are, but 1) I can swing it and 2) that's a whole year taken off my loan.

Would I be stupid to pass this up??  I'm thinking yes, but add'l input is never a bad thing.

Thanks in advance!

[cdtotten]

Lowering your interest rate while additionally lowering your payment term would significantly lower the amount of interest paid over the life of the loan, which is always a good thing. I would go for it!

[pizzadude]

It sounds like a great deal to me.....Are there any other fees or anything associated with the refi ?   

[cassie3783]

Just called back because I forgot to ask about add'l fees and the loan officer said because I'm a current member, there are no add'l fees for refinancing the auto loan.

[pizzadude]

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@cassie3783 wrote:

Just called back because I forgot to ask about add'l fees and the loan officer said because I'm a current member, there are no add'l fees for refinancing the auto loan.

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Nice !   I'd jump on it then, it will save you thousands of dollars in payments.....

[cassie3783]

Thanks for the feedback!  I was pretty sure I'd be foolish not to go with it, but I like to have add'l opinions as well!

I have an appointment Friday afternoon to get all the paperwork done!! 

Yay for refinancing at a lower interest rate & term! 

[Anonymous]

That's awesome and I just ran into the same type of deal not as good but I was wondering how this might affect my credit score if any of you might know because I'm trying to raise my score to get a better apartment or maybe even a house at some point.

So anyway I had a $13000 loan with 24% interest and 48 months to go at $324 a month and I thought it was time to try and do better. The best I could do was from capital one at 11% for 36 months paying $350 a month it's $26 a month more but saves me $2500 and 12 months. Was this a good move?

[marty56]

No Brainer.  Also great that it's with a CU.  CU's rule.