Is this a good refinance offer?

Anonymous · ‎02-20-2021

Hi There Fellow FICO'ERS!

I'm currently paying $488.00 for my car note at 7.44% I currently 22,800k on a '16 MDX with technology and remote start and 2wd. 74k miles

I was offered by cap one a payment of $417.00 @ 6.66% for 68 months.

A CU offered a payment of 406.17 at 3.74% for 65 months on $22,827.94 with discount with payment protection; starting on 5/20/2021.

I've never refinanced a vehicle before so I need some advice.

Is the CU refinance offer a good deal or no?

incognitony · ‎02-20-2021

How many months left on original loan? Don't finance more months than you have left to lower payment because you may end up paying more in long run. Also if you think you need that 3 extra months without a payment then that's fine but you accrue interest daily. Credit unions are mostly great

Anonymous · ‎02-20-2021

I have 57 months left on the original loan which will be 8 months more than my new one at 3.74% (interest rate edited due to error above)

mich800 · ‎02-20-2021

@Anonymous wrote:
I have 57 months left on the original loan which will be 8 months more than my new one at 3.74% (interest rate edited due to error above)

I would be hesitant to re-amortize longer than you are currently unless you got a much better rate. You are probably already under water and adding months is just going to make it worse. But I would take the CU offer if you are commited to making the same monthly payment.

Anonymous · ‎02-20-2021

Ok. Now I definitely can make the same payment or more monthly with the CU. I just wanted to avoid paying TD auto finance all of that interest. I would like to pay it off sooner but at a lower interest rate

incognitony · ‎02-20-2021

I would see if the CU would do that loan for less months. You would save about 3000 in interest by keep paying 488 a month by the Google car payment calculator and be paid off in about 51 months.

mich800 · ‎02-20-2021

@Anonymous wrote:
Ok. Now I definitely can make the same payment or more monthly with the CU. I just wanted to avoid paying TD auto finance all of that interest. I would like to pay it off sooner but at a lower interest rate

Then I would jump on it. The faster you can build equity the sooner you will open options if you ever need to replace the vehicle.

Anonymous · ‎02-20-2021

Okay. Thank you so much for the advice