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Auto Refi before mortgage loan

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Anonymous
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Re: Auto Refi before mortgage loan


@Raiderguy8 wrote:

I am in the same situation.  I am looking to buy a house in the next 6-12 months (hopefully closer to 6) and I just refinanced my auto loan.  Saved $130 a month on the payment so it was totally worth doing but, when the original auto loan showed up as closed on the report, my scores plummeted.  I am not applying for anything new anytime soon and so I am hopeful that my score will start to rebound with on time payments, etc by the time I go looking for financing.


Yup - I just went through this.  I refinanced my car loan which ended up saving me $200 per month but when the new account and old account hit my credit report - I lost 15-22 points!! I am glad to save the money but hate that my scores too such a hit.  Going to work on bringing down my utilization on my credit cards to help boost my scores. 

Message 11 of 13
Anonymous
Not applicable

Re: Auto Refi before mortgage loan


@Anonymous wrote:
I do...and they didn't approve my refi they said I have too much negative equity in the car. Sooo not sure what I should do now. $660.00 car note and $500.00 student loans if they calculate it at 1%

I applied to BoA for refinancing but was denied.  I was approved by Wells Fargo.  They do refinance their own loans.  My boyfriend just did this with them.  Your local credit union may be a good option. 

Message 12 of 13
StartingOver10
Moderator Emerita

Re: Auto Refi before mortgage loan


@Anonymous wrote:

@Anonymous wrote:
I do...and they didn't approve my refi they said I have too much negative equity in the car. Sooo not sure what I should do now. $660.00 car note and $500.00 student loans if they calculate it at 1%

I applied to BoA for refinancing but was denied.  I was approved by Wells Fargo.  They do refinance their own loans.  My boyfriend just did this with them.  Your local credit union may be a good option. 


Very, very unusual for a lender to refi their own auto loans. So like anything it depends on the lender. Ask before you apply.

Message 13 of 13
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