topic Re: Refinance or roll negative equity over in Auto Loans

Refinance or roll negative equity over

Anonymous — Sat, 10 Jan 2015 22:15:24 GMT

In a tough spot but seem to and have options which is nice.

I bought a few years ago a brand new 2012 Chevy Malibu, Credit was not great back then (low 600s) and got a loan through capitral one with a rate of 15%. Payment is currently 556. I currently owe 18,500 and the car trade in value seems to be about 10-12k roughly.

My wife and I are wanting to buy a new house in the next 12-18 months. I would like to lower my payments so when we do go for our pre-approvals, I am showing less monthly obligations.

I seem to have a couple options

I found a credit union willing to refinance the loan down to 7%, but it would add 20 more months on the loan - 60 months - at about 404. To make it work, I had to agree to buy the extended bumper to bumper warranty taking (up to 100k miles), and they mandated I carry the GAP insurance, which is ifne with me knowing I actually do need it.

However, since then, I just got an alert my Equifax score crossed into the 700s. Doing some research, would I be better off trading the negative equity in on a new car that has good cash back incentive and seeing If I could get an interest rate closer to 3 or 4%.

My commute to work is 70 miles daily, I put about 15k miles a year on my car, so a lease doesn't seem possible.

Just don't want to refinance the car and be kicking mysel in 3 months. Any thoughts here?

Re: Refinance or roll negative equity over

sccredit — Mon, 12 Jan 2015 17:34:47 GMT

Defiinitely a tough spot. Being so upside down I am surprised you found a credit union willing to refi it. Normally you'd be looking at 120% LTV MAX.

If it were me I'd be looking at taking the 7% with the $404 payment but still paying the $556 a month.

By the way there are 15k mile leases

Re: Refinance or roll negative equity over

dobirdsmommy — Mon, 12 Jan 2015 18:48:47 GMT

Agreed there are 15k a year mileage leases.

I just got one thru NMAC for 16k miles per year.

I drive about 45 miles per day.

Re: Refinance or roll negative equity over

Anonymous — Mon, 12 Jan 2015 19:44:25 GMT

A significant number of leases are 15K. I actually saw quite a few for 18K and even some for 21K/year.