topic Re: Is it too late to change my mind? in Auto Loans

Is it too late to change my mind?

Anonymous — Thu, 29 Sep 2016 10:32:15 GMT

I was approved for an auto refinance yesterday from Alliant. I wasn't thrilled with the rate but it did lower my payment some. It has already showed up in my online account, but I have not signed the documents they emailed to me. Is it too late to change my mind and wait for my scores to increase before refinancing? If I can back out will it report to the bureaus as a new account?

Re: Is it too late to change my mind?

pipeguy — Thu, 29 Sep 2016 10:43:30 GMT

I woud assume that if you have not signed the docs that you don't have to go through with the refi. That said, if the refi is saving you money, I see no reason to not go through with it "until you scores improve" since there is no reason you can't refi again if/when your scores improve. No reason to over pay now if the interm refi will lower your interest payments.

Re: Is it too late to change my mind?

Anonymous — Thu, 29 Sep 2016 11:07:58 GMT

Thank you for your response. I probably should have mentioned that the interest rate is a quarter percent higher than my current loan, it just stretches it out longer therefore lowering my payment. I'm just currently trying to reduce monthly bills for a possible impending separation. The idea of the lower payment and adding gap insurance that I don't currently have sounded good, the idea of increasing interest rate, not so much.

Re: Is it too late to change my mind?

pipeguy — Thu, 29 Sep 2016 19:43:15 GMT

@Anonymous wrote:
Thank you for your response. I probably should have mentioned that the interest rate is a quarter percent higher than my current loan, it just stretches it out longer therefore lowering my payment. I'm just currently trying to reduce monthly bills for a possible impending separation. The idea of the lower payment and adding gap insurance that I don't currently have sounded good, the idea of increasing interest rate, not so much.

In that case I probably would not do it.

Re: Is it too late to change my mind?

Anonymous — Thu, 29 Sep 2016 23:32:35 GMT

What is the rate? What are your scores?

Re: Is it too late to change my mind?

StartingOver10 — Thu, 29 Sep 2016 23:48:22 GMT

@Anonymous wrote:
What is the rate? What are your scores?

^^^this and also what is the payment for your lender and the Alliant payment?

Re: Is it too late to change my mind?

Anonymous — Thu, 29 Sep 2016 23:57:33 GMT

My EQ auto score according to Alliant is 667. Current loan is 4.49 / 235 month and Alliant is offering 4.74 / 192 month.

Re: Is it too late to change my mind?

Anonymous — Fri, 30 Sep 2016 00:00:47 GMT

I tried DCU first and was turned down

Re: Is it too late to change my mind?

StartingOver10 — Fri, 30 Sep 2016 21:24:05 GMT

@Anonymous wrote:
My EQ auto score according to Alliant is 667. Current loan is 4.49 / 235 month and Alliant is offering 4.74 / 192 month.

Based on this I would do the refi and then work on your scores and refi again when your scores get better.

It isn't costing you anything to refi, right?

You can always make a lump sum payment to reduce the term if you want to keep it at your current term. Or you can pay a little extra each month to reduce the principal amount.

Finally, if you aren't comfortable with the refi, don't do it. You are Captain of your own financial ship and really the rate you have right now isn't bad. The refi will save you $43/month for X months. Is it worth doing? Only you can decide.

Re: Is it too late to change my mind?

Anonymous — Tue, 04 Oct 2016 22:36:43 GMT

I agree with the Moderator. Unless the refi will impose a penalty for early payoff, it is a temporary win for you--i.e. lower monthly payment. Sure, APR is higher but, like the Moderator notes, there's no reason you cannot refinance again when you feel your score is high enough. My previous vehicle, which I just traded, was purchased new last year and my APR was 12.05% (yeah, credit score sitting pretty at 485). With a lot of hard work and diligence, I got a new 2016 Ford Edge Sport this month with a 2% APR (credit score 663). If you're not comfortable with the lender, try others. You have a good score. Cap1 Auto's pre-approval does a soft inquiry so you can check them and see if they'll offer you a refinance solution and see what APR you qualify. Bottom line, with that score you should have options. Best of luck to you.

Re: Is it too late to change my mind?

Anonymous — Tue, 04 Oct 2016 23:33:29 GMT

Thank y'all for the input. I did go ahead with the refi. I am going to the garden for at least six months and see where I'm at then.

Re: Is it too late to change my mind?

grillandwinemaster — Thu, 06 Oct 2016 04:56:36 GMT

Congrats! I think it's a good idea to lower your payments, especially if your contemplating a separation.

Best wishes to you and your spouse...

Re: Is it too late to change my mind?

Appleman — Sat, 08 Oct 2016 13:04:23 GMT

As an aside, I wonder if you did not electronically sign the loan agreement when you applied? And does that then make it a done deal?