refi or keep loan as is for 24 more months

[peepers]

Hi everyone.

So in 2012, I got a good deal (car price/miles/option wise) on a 2009 Nissan Maxima.  I ended up financing around $21K however at 10% interest as my credit wasnt repaired to the point it is now (stats below).  My monthly payment is $460.  I have 24 months left on a 5 year loan, $11,300 remaining

My husband and I are set to close on our house 5-19.  After closing, I was wondering if it would benefit me to refi for a lower interest rate.  Or have I already in the past 3 years paid the high interest hit, and and paying so much towards Principal now that it wouldnt make sense to refi.

Keep in mind, we were approved with what my car payment is now, and I havent previously refi'd simply because I knew we would be mortgage shopping at some point.

OR, should I trade it in (I would not be upside down) and start with a fresh lower interest loan on a different vehicle?

Advice?  thanks!

[SamsungHDTV]

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@peepers wrote:

Hi everyone.

So in 2012, I got a good deal (car price/miles/option wise) on a 2009 Nissan Maxima.  I ended up financing around $21K however at 10% interest as my credit wasnt repaired to the point it is now (stats below).  My monthly payment is $460.  I have 24 months left on a 5 year loan, $11,300 remaining

My husband and I are set to close on our house 5-19.  After closing, I was wondering if it would benefit me to refi for a lower interest rate.  Or have I already in the past 3 years paid the high interest hit, and and paying so much towards Principal now that it wouldnt make sense to refi.

Keep in mind, we were approved with what my car payment is now, and I havent previously refi'd simply because I knew we would be mortgage shopping at some point.

OR, should I trade it in (I would not be upside down) and start with a fresh lower interest loan on a different vehicle?

Advice?  thanks!

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Hi peepers

You should 100% refinance after you close. You're still paying 10% interest on $11,300 for 24 months.

From a financial standpoint, you should not trade in. You almost always lose money either on the trade or the purchase. Even if they offer you more money on the trade than what your car is worth, its because they are making more money on the purchase or the financing.

[peepers]

Thanks Samsung. Is it possible to refi for a 2 year term? Something about still making payments year 6 on a by then 9 year old vehicle is unsettling to me (if 3 is the shortest)

[peepers]

I'd like to add that I LOVE my car, and really would prefer to keep it and pay it off. The vehicle i traded in on this was paid off for year so I keep cars 6-7 years if I like em. Glad to know I'd see some savings by refinancing 3 years in

[Anonymous]

You could refi and still keep it at 2 years, could even do 1 year if you could afford it.

[SamsungHDTV]

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@peepers wrote:
Thanks Samsung. Is it possible to refi for a 2 year term? Something about still making payments year 6 on a by then 9 year old vehicle is unsettling to me (if 3 is the shortest)

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Yes its possible to refinance for a 2 year term. Minimum loan terms vary by lender, most do any where from 24-84 months. You can probably find 12 month terms.

Go speak to the lenders and let us know what they say.