Auto Refinance Help

[lambo003]

hi, I have never made a post on here before so I apologize if this is not the right place to create this post. I recently purchased a car in October 2013 (2010 Acura TSX) from a Jeep dealer. I shouldn't have bought it under the terms that I was able to purchase it at. But what's done is done and I learned my lesson and now I need help on trying to better my situation. The loan term is for 72 months, the loan amount was for $26k, monthly payments of $485, interest rate of 9.95%. I want to wait until I make 6 monthly payments (so far I've made 5) to try and refinance preferably with a credit union. The NADA retail value for my car is $22,200. Unfortunately I am upside down on my loan since my current pay off amount is $24,900. I am currently thinking about applying at one of three credit unions which are bethpage fcu (who finances up to 125% of the NADA retail value), Teachers fcu (who finances up to 100% of the NADA retail value), and Digital Credit Union (I'm not sure how much they finance up to). I'd really like to get the APR to at least under 4% and change the term to 60 months to shave off the extra 6 months. Now my problem is and what I would appreciate some advice on is would I be able to refinance with a credit union being that I only have a year and six months of credit history? I only know my Equifax score which currently is 731. And does anyone know of any associated fees that come with refinancing? Any advice would be greatly appreciated. Thank you.

[Remember0]

You should be fine. You may have to bring some cash to the table to bring the amount owed down to NADA retail.

DCU has a 1.29% for 65 months deal if you move direct deposit to them (else it's 1.79%). They only need a 675+ EQ so you should be good. But they'll only do 100% of NADA Retail, you need to bring the difference and give it to them. If you want, they'll do 60 months for the same APR.

There should be no fees for refi'ing. It's not like a mortgage. Ask the lender though!

[lambo003]

Thanks a lot for the advice and reply ! But I'll try to save up some extra cash to make up the difference. But do you think it'd be best to try the bethpage fcu because it finances up to 125% of the NADA value? Or am I better off saving up the cash for one hard pull from DCU?

[Remember0]

I don't know Bethpage's requirement, but personally 1 extra inq if necessary won't hurt much if any. I'd apply to bethpage and see what they give you.

If necessary, save and do DCU after. I'm guessing Bethpage will work out just fine since you have a 731 and their top rate seems to be not much higher than DCU at all.

[black_citi]

Here's my situation. I bought a 2012 Impala back in July 2013. I paid $20903 otd. I made my first $429 a month payment to santander in september. Interest was 13%. I made 6 on time payments and after doing some extensive research I was able to refi with DCU at 6.5% in march. New payment is 339.

Heres where it gets a little interesting. The NADA value on my car at the time I was ready to refi was 17725. I owed 20177. When I called DCU they told me they can only finance the NADA value. I would need to bring 2452 to the table (which wasnt a problem since I had the money). I had to wait a few days though because I needed to get my DL and SSC out to them.

When I called back they rep gave me their email address to send loan information to as well as an extension number to call once I sent out my DL and SSC. I scanned and emailed them my info and I called the extension and after a short conversation and putting me on hold a couple times she told me that they can refi the entire 20177 i owed. I didn't need to bring any money to the table. I have $3000 saved now.

I guess you can call DCU and see what they say. She never gave an explanation as to why I didn't need to put money down. I didn't ask either lol.

[juggalo9er]

on dcu's website it says up to 120% right under the under loans section of their page

[Remember0]

"Qualified borrowers can finance up to 120% of NADA retail book value or 120% of the purchase price – whichever is less, PLUS DCU GAP and DCU Warranty. DCU will only finance over 100% when it's DCU's GAP and Warranty, not dealer add-ons."

Seems to me you need to buy their GAP and Warranty to get to 120%? Maybe they are just as confused as us, leading to some approvals for 120% and others enforcing 100%. If that's the case, we should probably NOT call and ask.