BOA vs WFC re-finance (what a difference)

[Anonymous]

I was looking at my wife's car loan bill, thinking to myself this 15.8% rate is too high. You haven't missed a payment in years. So we check out her FICO's. 740-780 being the results of all three here on myfico.

So she phones up Wells Fargo (who she had the loan with already). How much to get her car loan re-financed? (3 years) They call back an hour later. They can go 14.9% over 3 years or 14.1% over 5 years. (boooo, lame)

Now we've all seen the table on myfico's homepage that shows FICO scores vs interest rates. I'm thinking 6 to maybe 7.5% what with the credit crisis going on......My wife says to Wells Fargo "why such a high rate? I would expect a rate like that if I had terrible credit." They answer that we're lucky to even qualify for a loan, nevermind get a good rate.

So she asked Bank of America how much for a refinance. 5.69% over 3 years. Much better.

Hard to believe there would be such huge rate differences between banks. But it pays to shop around.

[Takunda1]

Yes there is a big difference between banks. How did you choose WF for financing in the first place? I'm surprised WF was willing to refi a loan they already had in the books. I we we at COAF do not refi our own loans, if you want a lower rate we just tell you to refi with someone else. I guess maybe WF does securitize their loans.

[LeTired]

I have an auto loan with BofA right now at 12.13% (LAME, never had a late payment either and I've had a CC with them for like 5 yrs)

I got sick of the $700/mo payments so I went to my CU and they refi-ed me at 6.25%.  Dropped my payment $100/mo!!

[LeTired]

JUST KIDDING!! They called me yesterday and said they couldn't do it!  ughhhhhh back to square 1.

[Anonymous]

No particular reason why she picked Wells Fargo to start with. Just handy having a branch close by. She went to refinance with them because she had been happy with their service. Although I was surprised they offered such a terrible re-finanace rate. If they weren't interested in a re-finance, why bother going through the ordeal of even giving us a quote?

 I told her she might as well try Bank of America since she has a savings account there. Probably worth .25% or something if you're a member. I know Chase is always advertising small loan deals like that to members.

I had to laugh filling out the request for the re-finance (online). Just as she's about to hit submit, I said (jokingly) "I bet it will pop saying APPROVED the second you press the button".....Well wouldn't you know it? It did.