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Thinking about refi-ing my truck

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HigherCredit
Member

Thinking about refi-ing my truck

I just want to make sure refi-ing my truck thru NavyFed won't negatively impact my credit in any way. I'm working on buying a 600k home & I can't have any caveats.
Message 1 of 7
6 REPLIES 6
Anonymous
Not applicable

Re: Thinking about refi-ing my truck

I literally refi-d mine two days ago.  Here's how it broke down for me:  On the plus side, my interest went from 14.5% to 7.5% due to better credit situation, and payments went from $460 (51 remaining) to $340 (48 months).  Needless to say, it was well worth the down sides.  And here they are: First, it creates an inquiry.  Despite a heartfelt attempt, I couldn't find anyone willing to base a credit decision on my own copy of a bureau; they have to do their own hard inquiry (SOP for most, if not all, anymore, I guess).  Second: it lowers your average age of accounts, as this is considered a new account, regardless if the old one is closed or not.
 
Having asked the same question when in your shoes last year, I'll pass what the pros advised; hold off on ANY new inquiries or accounts if at all possible.  The one exception that could come to bear would be if you need to free up cash for a better D/E ratio, then I could see weighing that decision carefully (any pros want to help out here?).
 
Just a couple words from someone who's been there.  Hope it helps, that amount should buy a beautiful home!  Good luck...
Message 2 of 7
HigherCredit
Member

Re: Thinking about refi-ing my truck

Thanks OBX! I completely forgot about the acct age thing. Next to my Sallie Mae loans, my Triad Finanacial truck loan is the oldest acct, about 2yrs. I'd rather have a longer acct history than saving money at this point. If someone doesn't have any better reasons, I'll refi after I get my house. Thanks again!
Message 3 of 7
smallfry
Senior Contributor

Re: Thinking about refi-ing my truck

Unless the home is a year off I would hold off on refinancing the vehicle. Navy is great. I used them myself. Got 6% on a six month old car they refi'd the entire balance, gap only cost $200 and they gave me a $100 credit into my share account.
Message 4 of 7
smallfry
Senior Contributor

Re: Thinking about refi-ing my truck



@HigherCredit wrote:
Thanks OBX! I completely forgot about the acct age thing. Next to my Sallie Mae loans, my Triad Finanacial truck loan is the oldest acct, about 2yrs. I'd rather have a longer acct history than saving money at this point. If someone doesn't have any better reasons, I'll refi after I get my house. Thanks again!


I doubt the age will hurt much since the oldest account is 2 years old. Upon manual review the answer is you refi'd to save money. Make sense?
Message 5 of 7
HigherCredit
Member

Re: Thinking about refi-ing my truck

Why do you think it wouldn't hurt much if I wiped out one of my oldest accts? Having a lower APR doesn't improve my score but, a longer credit history does. Please explain.
Message 6 of 7
HigherCredit
Member

Re: Thinking about refi-ing my truck

Yes, it makes sense to save money but, having a better score outways that. I'm no expert but, I don't think a lender will make concessions just cuz I refi-ed to save money.
Message 7 of 7
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