Should I refinance my car?

[Anonymous]

Current loan is a 6 year 10.5% loan for $16800 I have 24-25 months left with payments at $317.63 ($7623.12 assuming I pay off using normal payment) I only have $5500 left. So essentially it's going to cost me

I could refi with NFCU at 3.5% (assuming I get approved, which I should) for 24 months at $5500 and my payments would be $237.61 ($5702 after making all payments)

I could save nearly $2000 over 2 years if I refi? Am I calcualting this right?

EDIT/Update

Well just refinanced with NFCU 24 months/$248.02 at 5.59% compared to my 26 months left at $317.63

AKA Saving over $2000... wow. 

Insanity.

[IOBA]

What is your goal?  To lower your payments?  To lower your interest rate?

How much is your car worth, blue book?

If you just don't like your interest, pay it off sooner.  Double up on payments and make sure you tell the lender that the extra is to be applied to principle ONLY!  It looks like you have already paid a bit extra.

When you refi, there are some costs involved and you run the risk that the old lender will say you are late with a payment.   Since you are so close to the finish line, I would suggest making the extra payments and sticking it out.

[Anonymous]

I don't plan on paying it off earlier, but if I could save $2000 why wouldn't I? I'm just wondering if I'm missing something.

Edit: Also the car bluebooks at 7-8k

[Anonymous]

Many years ago I refinanced my first Mustang and saved a boatload in interest, I had no problems what so ever, and just last year I refi'd my new Mustang thru my CU, saving me something like 5500 over the 5 yrs.

Unless I'm missing something, I don't see how it could hurt you.

[Anonymous]

Also I could refinance and keep making the same payments I'm making now and it would be paid off much faster, right?

[IOBA]

Have you called Navy to find out how much they would lend you?

Have you called your current lender to ask them what your 10 day pay off would be?

If you have no intention of paying off your loan sooner, then call your current lender for payoff, then call Navy and see what they will/can do for you.  They do not have to pull credit to give you the generalities.  But if you are going to go with them anyways, apply.   

If the end result is to save on interest, why wait?  

[Anonymous]

Well just refinanced with NFCU 24 months/$248.02 at 5.59% compared to my 26 months left at $320

AKA Saving over $2000... wow.

Insanity.

[Anonymous]

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@Anonymous wrote:

Also I could refinance and keep making the same payments I'm making now and it would be paid off much faster, right?

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Heck yes, you could potentially knock off 6-7 months (that is just a guess, I did no math)

Congrats on the refi, you did a very smart thing.