topic Chase auto refinance pre-qualified. Do or Don't? in Auto Loans

Chase auto refinance pre-qualified. Do or Don't?

vampireszombies — Tue, 10 Nov 2015 23:39:31 GMT

Got an email today saying im pre-qualified for an auto refinance through Chase at 2.51% with another .50% knocked off if I open a checking account as well.

Currently I have a rate of 4.95% at my local credit union... I think I have around 45 months left.

Is it wise to refinance now (again, I started at 10%)? Since it would essentially extend my loan out longer? Or better to ride out the next 40+ months of current rate?

Thanks!

*Posted in wrong column, sorry

Re: Chase auto refinance pre-qualified. Do or Don't?

gibeon — Tue, 10 Nov 2015 23:45:40 GMT

I would check a financial calculator and see if 30 or 36 months at 2.01% is about the same payment (or even less!) and just get it paid off 4 to 10 months earlier.

Re: Chase auto refinance pre-qualified. Do or Don't?

Anonymous — Wed, 11 Nov 2015 07:48:19 GMT

you don't have to refinance for 5 or 6 years, you can pick up from what you have left to save you money. you will need to at for a title fee (varies by state) but that should be the extent of it

Re: Chase auto refinance pre-qualified. Do or Don't?

fury1995 — Wed, 11 Nov 2015 14:07:59 GMT

This will really depend on the amount left to refi. The higher the amount, the bigger the impact.

It's nearly 3 basis points lower than your current rate so it is definitely worth investigating the numbers.

Normally the primary goal is monthly budget and a close second is cost of money. I agree with using a shorter term if you"re confortable with the monthly payment using the shorter term at the lower rate. Your overall time based expense for the car and loan would be less.

Re: Chase auto refinance pre-qualified. Do or Don't?

Anonymous — Wed, 11 Nov 2015 16:19:12 GMT

What are your scores OP?

Re: Chase auto refinance pre-qualified. Do or Don't?

vampireszombies — Wed, 11 Nov 2015 19:06:04 GMT

I owe about 18.5k. FICO score is about 690.

Re: Chase auto refinance pre-qualified. Do or Don't?

fury1995 — Thu, 12 Nov 2015 14:11:28 GMT

@vampireszombies wrote:
I owe about 18.5k. FICO score is about 690.

2.01% is a very good rate from Chase based on that score.

Now you need to look at your monthly budget.

3 years at 2.01% should be $530 / monthly and $579 total linterest (estimated)

4 years at 2.01% should be $400 / monthly and $770 total interest (estimated).

Decide what's more imortant to you. Compare it to what you are currently paying and go from there.