topic Re: Daughter Refi Auto Loan Question in Auto Loans

Daughter Refi Auto Loan Question

rushingjr — Sat, 30 Nov 2019 02:21:00 GMT

My 20yo college kid bought a car abt 3 mos ago. $6k at a high int rate (10%). How soon should she refi out of that loan and what's the best way to do it (CU, Cap1)?

Re: Daughter Refi Auto Loan Question

Ron93 — Sat, 30 Nov 2019 04:16:09 GMT

Yes refinance now. Refinancing typically has higher rates than new car loans. Rate Genius (very good broker) has some of the best rates around 2.99%-4.2% for well qualified buyers. The whole cost for a refi from them is $220 and they do all the paperwork. I just did one with them two months ago and it was easy as pie. Got a rate of 3.49% and I have a Fico score of 810

Re: Daughter Refi Auto Loan Question

AllZero — Sat, 30 Nov 2019 04:25:17 GMT

I would recommend joining a local credit union or online e.g. DCU.

Re: Daughter Refi Auto Loan Question

rushingjr — Sat, 30 Nov 2019 12:41:16 GMT

DCU = Digital Federal CU to be sure?

Re: Daughter Refi Auto Loan Question

Ron93 — Sat, 30 Nov 2019 14:53:18 GMT

I checked a lot of the credit unions for a refi and their rates are not that good.

Re: Daughter Refi Auto Loan Question

AllZero — Sat, 30 Nov 2019 15:03:11 GMT

@rushingjr wrote:
DCU = Digital Federal CU to be sure?

Yes, correct. The also offer 6.17% APY on savings up to $1,000.

Re: Daughter Refi Auto Loan Question

Anonymous — Sat, 30 Nov 2019 15:22:13 GMT

The real question is will she even qualify for a refiance yet... Is the 10% due to her being a first time buyer? If she's a thin file with only 3 months of payment history you probably won't get a bank/credit union to pick her up just yet unless they also have a FTB program. If she's not a FTB, what was her score when they pulled? If she purchased from a dealer I'm sure they marked the rate up 2 points (2%) if financed through a bank.