DCU Auto refinance rates based on scores

[masscredit]

DCU is advertising a refinance rates of 4.99% so I figured I’d jump on that to refinance the auto loan I got from them in October.  My rate for that is 7.49%.  Their requirements for the best rate used to be an EQ 08 score of 680 or higher so I figured I was golden with the 698 I saw just before I applied this past weekend. I found they now go by EQ V5 scores. If I remember correctly, their current rates are -

760+ - 5.49%

730-759 - 5.74%

700-729 - 6.24%

675-699 - 7.24%

There is an additional .50% off if you have a direct deposit set up into your checking. That and the 760+ score is what gets the best rate. Things change...

So… I was kind of surprised when she told me my rate would be 7.24%. I told her I wanted the 4.99% rate. That’s when she gave me the rundown. That was a disappointment. She said my score is 682. My current payment is $520 per month (65 months with 57 remaining). The new loan will also be 65 months with a payment of $456.  I’ve been paying $600 per month and will continue to do that. I estimate I’ll have it paid off in 48 months and will save about $500 with the refi. More with paying it down quicker. I figure I already took an inquiry and maybe it will be beneficial to have another loan showing as paid so I guess I'll proceed with this. 

Oh yeah, there is a $150 fee to do this.

[cashorcharge]

Thanks for sharing all the details on the process and approval rates..

[dfwxjer]

I'm not sure that math checks out for a 0.25% rate reduction... Interest is front loaded so the CU benefits quite a bit on this. 

If you keep the car to term, paying $600, you might break even. If you trade/sell it before term you'll still pay the CU more interest.