DCU refinance process? Should we go for it?

[Anonymous]

Hi guys

I posted here several months ago about refinancing out 2012 JEEP  which we purchased about 10 months ago from the dealer. We went through the dealer to get financing at 6% and accepted since this was out first loan. Currently owe around $40k on the truck and wanted to refinance. Waited a few months to bring out util down in order to get approved for their Credit card as well after members here advised us to.

Members here recommended we use DCU but since that was several months ago wanted to know if there were any other options before we pull the trigger?

Also, if DCU is still an option I wanted to know how the process would go. I remember people saying here that you can avoid 2 hardpulls by using a certain method. Should I signed up for the bank account first? Should I apply for the loan first? What documents do they require for the refinance?

The truck is under my wife who owns here own business.. and pays herself by check each week. Her score is somewhere around 700 and 1 sales tax lien and another $52 collection which we have to dispute. It belongs to a company nutorious for showing up in peoples CR when they don't belong there (some online book or movie rental company)

Anyways, I would appreciate it if you guys could shed some more light on this. I plan on refinancing this week so wanted to make sure I had all my ducks in a row before we do.

Would appreciate it if anyone who recently dealt with DCU could chime in.

[Ragelog]

I have gone through 1 refi and 1 purchase with DCU and a Credit card approval. Do you know your Equifax 04 Fico score? That is the one they use for approving loans and credit card applications. 675 will get you their best tier vehicle loan and I know a 708 will get you their second best APR on their credit card. 

I was double pulled the first time. Then a single pull when I did the purchase and credit card. So I have no advice there I think possibly it's apply for a loan or account then call in and ask them to use that pull for the second part. I am sure someone more knowledgeable will chime in.

They are very easy to work with they are a little manual but you can literally apply on the phone and get an approval on the same call typically.

I plan to use them for all future vehicle purchases and if I ever decide to get into home ownership I will go with them as well.

I hope this helps.

Sam

[Anonymous]

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@Ragelog wrote:

I have gone through 1 refi and 1 purchase with DCU and a Credit card approval. Do you know your Equifax 04 Fico score? That is the one they use for approving loans and credit card applications. 675 will get you their best tier vehicle loan and I know a 708 will get you their second best APR on their credit card. 

I was double pulled the first time. Then a single pull when I did the purchase and credit card. So I have no advice there I think possibly it's apply for a loan or account then call in and ask them to use that pull for the second part. I am sure someone more knowledgeable will chime in.

They are very easy to work with they are a little manual but you can literally apply on the phone and get an approval on the same call typically.

I plan to use them for all future vehicle purchases and if I ever decide to get into home ownership I will go with them as well.

I hope this helps.

Sam

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Ahh thank you for this. I was also wondering if they do home/commercial refinance as I have a commercial building right now with a crazy rate.

Did you have to send anything into them as far as income etc? My wifes owns a business but just deposits a business check into her personal account each week to pay herself. And yes, i believe we're above a 675 but I will double check.

[Ragelog]

When I refinanced I had to send typical copies of registration, proof of insurance and most recent paystub. Possible a copy of a photo ID to setup my membership. On my recent purchase it was just a purchase order and paystub. I am not sure what they would require for self employee. Start a live chat with them they will answer most questions very quickly. Also just a note the score here is a EQ FICO 08 the 04 tends to usually be lower but in my case is 30-40 points higher. Which worked out in my favor back when I was first approved as I had a 645 Fico 08 but a 683 Fico 04.

[Anonymous]

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@Ragelog wrote:

When I refinanced I had to send typical copies of registration, proof of insurance and most recent paystub. Possible a copy of a photo ID to setup my membership. On my recent purchase it was just a purchase order and paystub. I am not sure what they would require for self employee. Start a live chat with them they will answer most questions very quickly. Also just a note the score here is a EQ FICO 08 the 04 tends to usually be lower but in my case is 30-40 points higher. Which worked out in my favor back when I was first approved as I had a 645 Fico 08 but a 683 Fico 04.

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Thanks again. Didn't realize they had a Live chat. They seemed to be closed now since its after 6pm but I will do that first thing tomorrow morning to find out more details. All of your information has been helpful though. My in-laws just refinance a commercial property with another company and ended up with something around 11% which is high, I wish they took my advice and tried DCU but I think they were hesitant due to the fact that everything doing over the phone/internet. Not sure how they would get the property appraised in the first place.

[Anonymous]

I also did the math last night and from nearly 7% to 1.5% the payments would only drop $50 per month? Does that make sense to you guys? I thought it would go down at least $100. I know it depends on the term as well but I left everything the way it is now and only changed the interest rate.

[Ragelog]

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@Anonymous wrote:

I also did the math last night and from nearly 7% to 1.5% the payments would only drop $50 per month? Does that make sense to you guys? I thought it would go down at least $100. I know it depends on the term as well but I left everything the way it is now and only changed the interest rate.

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How many months?

You mentioned about 40k owed but no mention of the term remaining.

I estimated

40k owed for 60 months at 7% would be 792.05 per month at 1.49% would be 692.22

40k owed for 72 months at 7% would be 681.96 per month at 1.49% would be 581.10

So it looks like around that $100 a month saved unless you are reducing the term on the new loan. Say you have 72 month left and are refinancing to 65 months then a lower difference makes sense. Also if your remaining term is less than 60 months it will means less difference since less interest is charged the lower the term even at the same rate. 

[Anonymous]

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@Ragelog wrote:

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@Anonymous wrote:

I also did the math last night and from nearly 7% to 1.5% the payments would only drop $50 per month? Does that make sense to you guys? I thought it would go down at least $100. I know it depends on the term as well but I left everything the way it is now and only changed the interest rate.

---

How many months?

You mentioned about 40k owed but no mention of the term remaining.

I estimated

40k owed for 60 months at 7% would be 792.05 per month at 1.49% would be 692.22

40k owed for 72 months at 7% would be 681.96 per month at 1.49% would be 581.10

So it looks like around that $100 a month saved unless you are reducing the term on the new loan. Say you have 72 month left and are refinancing to 65 months then a lower difference makes sense. Also if your remaining term is less than 60 months it will means less difference since less interest is charged the lower the term even at the same rate. 

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Yes, something seems off. I believe right now we are at 60 months. Originally the Jeep cost $47k with $5k down (went to taxes, title, plates, etc). Now we're at around $40k and paying $752 per month. I hope this makes more sense?

[Anonymous]

And to be exact its around 6.7%