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Regular Contributor
Posts: 165
Registered: ‎11-20-2015
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DCU Refinance scenario

So I applied to refi my $21,700 balance on my car with DCU and I was approved. It's a good thing I know bc last November I was denied due to too many recent accounts opened. The loan officer kept her word that if I stayed with my payments for 6 months and on time with no lates, I'll be approved in that time frame if I still want to refinance. Well I got the green light today. My goal was to lower monthly payments. With things in my family always coming up that cost money, and my over time at work not being consistent like it use to, the extra money in my pocket a month helps. Well, with that said,I want some input if I'm being naive with this. My car loan is with Covantage Credit Union in Wisconsin. They have be absolutely great! My loan was originally for $24k a year ago@10% for 60 months. As my credit had gotten better, my loan officer has given me rate reductions on my loan. It was just reduced to a hair under 6%. Well my refinance with DCU was for $21,700 for the balance @9.9% for 65 months and no payment for 60 days. My payment went from $550 month to $430 month. Am I being young and dumb per say with this situation? My goal is to actually sell the car and until then I wanted a lower payment. I just don't want the payment and my needs have changed since I bought the car. In all reality it cost me $700 month just to drive it to work and that's where I spend most my time. I find it to be a waste. Should I have stayed with my original lender and toughed it out, or did I make a good choice? I kinda feel like I did make a good one. DCU said my score was EQ 599. The wrist of all my scores, go figure lol. I wish they pulled TU instead. If I made a bad choice,I guess it's life, and you live and learn then move on. Thanks everyone.
Regular Contributor
Posts: 151
Registered: ‎04-02-2016
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Re: DCU Refinance scenario

If your rate with previous credit union was reduced to 6% after a year, based on an amortization schedule you are going to cost yourself a couple $1000 in additional interest by refinancing to a 9.9% rate for 65 months. Especially since you stated its been a year paying on the original 60 month term.

What was your payment dropped down to with interest rate reduction....$510 ish?

Easiest way to figure out if this was a good deal or not would be to plug all this info into an amortization calculator and then do a comparison.

Regular Contributor
Posts: 165
Registered: ‎11-20-2015
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Re: DCU Refinance scenario

It didn't reduce my monthly payment, they took it off the back of the loan so my loan would be paid sooner. If I remember right, it took off close to $2000 in interest. I hate these calculations, but from what my loan officer told me, basically my interest was reduced and now more money a month is applied to principal balance.
Regular Contributor
Posts: 151
Registered: ‎04-02-2016
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Re: DCU Refinance scenario

Gotcha...here is a calculator to mess around with

http://www.myamortizationchart.com/auto-loan-amortization-calculator/

Regular Contributor
Posts: 165
Registered: ‎11-20-2015
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Re: DCU Refinance scenario

Very nifty! I didn't know such a thing existed lol. Thank you.
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Valued Contributor
Posts: 7,411
Registered: ‎01-08-2013
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Re: DCU Refinance scenario


cmony787 wrote:
Gotcha...here is a calculator to mess around with

http://www.myamortizationchart.com/auto-loan-amortization-calculator/




cmony787 wrote:
Gotcha...here is a calculator to mess around with

http://www.myamortizationchart.com/auto-loan-amortization-calculator/

Nice tool to have!
EX 08 Fico: 729 TU 08 Fico: 735EQ 08 Fico: 740Total Credit Line: $128,600Utilization: 6%Inquiries:EX-6TU-7EQ-5


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