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Established Member
vegas757
Posts: 36
Registered: ‎08-11-2011
0

To refi or not

I recently bought a vehicle for $37,500 at 5.29% over 6 years. My out of state credit union offered to refi it at 3.99% over 6 years. The catch with them is because I don't live in their state, they can only approve me for $35,000. Is it worth paying $2,500 out of pocket to knock it down to $35,000? The monthly payment would be $547 compared to $609, saving $62/month.
Regular Contributor
tylaw13
Posts: 173
Registered: ‎06-28-2012
0

Re: To refi or not

you would save a total of $1,220 over 6 years. It all depends on if you want to fork over 2500 now for $1220 over 6 years (total of 3720 over 6 years)

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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011
0

Re: To refi or not


vegas757 wrote:
I recently bought a vehicle for $37,500 at 5.29% over 6 years. My out of state credit union offered to refi it at 3.99% over 6 years. The catch with them is because I don't live in their state, they can only approve me for $35,000. Is it worth paying $2,500 out of pocket to knock it down to $35,000? The monthly payment would be $547 compared to $609, saving $62/month.

If you can afford paying the upfront money I think it is well worth not paying the extra interest.

 




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