NFCU Auto Loan Approval!

[Anonymous]

Have been researching auto refinance as I am currently at a 10% rate on a vehicle I purchased in 2018.  I've raised my score from the low 600's to the low 700's since then.  Called NFCU yesterday since I just closed on my home and applied.  To my surprise they came back with the lowest rate available on my year model of 3.89%!!  I was honestly shocked to get the lowest rate.  They did not tell me my FICO score, but they pulled Equifax and those scores range from 714 - 749 depending on what model they used.  

Now I need to determine what the best course of action is with the loan.  I explained I wanted to put money down on the refinance.  They stated I couldn't technically put anything down now.  Said they would send me the check to pay the original creditor off and then I could send NFCU the lump sum payment and do a no credit pull refinance for the new balance within 30 days.  I wonder if I should pay the chunk down and reduce my installment util and not refinance again.  I'm sure it all depends on where I want my payment though, and I don't need to maximize score at the moment so a high installment loan balance likely won't be an issue as it relates to the impact on my score.

As Financed:

2018 Nissan Armada

$48,602 @ 3.89 for 60 MO $893/MO

Optional Refinance within 30 days:

Pay $20K within 30 days and refinance $28K

$28K @ 3.89% for 48 MO $631/MO

[Anonymous]

I guess I really don't understand your question . The rate is the same so it comes down to what you want as your monthly obligation.  I can't answer that.  

Personally  I would aim to not be upside down on the loan at anytime and I would want to pay it off as quickly as possible.  

[Anonymous]

@Anonymous My apologizes if my question was confusing. 

I have 2 options.  Both include paying $20K against the $48K balance.  

Option 1:  pay $20K against the loan and refinance the vehicle at $28K for 48 months. 

Option 2:  pay $20K against the loan as is and continue to pay the higher monthly payment until paid off without refinancing.

i agree about trying not to be upside down and paying it off as soon as possible.

[Harvey26]

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@Anonymous wrote:

Have been researching auto refinance as I am currently at a 10% rate on a vehicle I purchased in 2018.  I've raised my score from the low 600's to the low 700's since then.  Called NFCU yesterday since I just closed on my home and applied.  To my surprise they came back with the lowest rate available on my year model of 3.89%!!  I was honestly shocked to get the lowest rate.  They did not tell me my FICO score, but they pulled Equifax and those scores range from 714 - 749 depending on what model they used.  

Now I need to determine what the best course of action is with the loan.  I explained I wanted to put money down on the refinance.  They stated I couldn't technically put anything down now.  Said they would send me the check to pay the original creditor off and then I could send NFCU the lump sum payment and do a no credit pull refinance for the new balance within 30 days.  I wonder if I should pay the chunk down and reduce my installment util and not refinance again.  I'm sure it all depends on where I want my payment though, and I don't need to maximize score at the moment so a high installment loan balance likely won't be an issue as it relates to the impact on my score.

As Financed:

2018 Nissan Armada

$48,602 @ 3.89 for 60 MO $893/MO

Optional Refinance within 30 days:

Pay $20K within 30 days and refinance $28K

$28K @ 3.89% for 48 MO $631/MO

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I would do option 1 and then pay down the loan by 20K. and continue paying 893 and you will have it paid off in 2 1/2 years. I would just make it and even 900 i hate uneven numbers.