Re-finance?

[Anonymous]

Hi guys, i have my lexus now for exactly 6 months and i was wondering when is a good time to re-finqnce my auto loan? Or should i just keep it as is? Currently making $589 a month with a 3.9% apr (i know it is high!) but that waa when my score was a lot lower. I was looking at DCU but i honestly don't know how re-financing works my scores are current on my signature thank you in advance!

[jeffm4688]

Usually when you re-finance you get approved via a new lender, I did this with Penfed when I refi'd from 7% to 2.25% dropping my payment $60 a month last year.

I applied through penfed, got approved and they mailed me a payoff check. I took the payoff check into my local branch and paid off my original car note and got a lien release. Penfed then sent the paperwork to me to sign for their lien to be placed on the title. It wasn't too difficult, and was definitely worth $60 a month for 72 months in my case.

I'm guessing the process can vary depending on state. But it's usually similar. 

[Anonymous]

Thank you for the explaination Jeff...I apprecaite it. I will have to sit and think about this some more. I still have my DCU application saved, I just wanted to see the pros and cons to it. 

[Appleman]

PenFed was great to me. With one EQ pull I was able to apply for multiple products.

I refinanced the family van from 5.125% to 1.99% with PenFed. As long as the vehicle is less than 1 year old, they will give you the lowest new rate you qualify for.

Very easy process and if you like you can also apply for one (or more) of their credit cards or the PLOC.

Good luck and let us know what you did!

[RonM21]

If your scores are up, and the current rate is high, I'd recommend Penfed, DCU, or really mkst CU's to refinance. The rates are much easier to work with.

[Anonymous]

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@Anonymous wrote:
Hi guys, i have my lexus now for exactly 6 months and i was wondering when is a good time to re-finqnce my auto loan? Or should i just keep it as is? Currently making $589 a month with a 3.9% apr (i know it is high!) but that waa when my score was a lot lower. I was looking at DCU but i honestly don't know how re-financing works my scores are current on my signature thank you in advance!

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If ur score was lower before than what's on ur signature it's already amazing to get the 3.9 score on signature isn't even in the good zone yet only maybe the 675 but that still under many bank and lender 680 for best rate 

[Anonymous]

I refi'd with DCU (from Ally) after only 4 months & rec'd the rate of 2.9% which was the lowest rate at the time without opening a checking account. I believe they pulled EQ & my FICO was around 681, payoff was $21,XXX. All I had to do was send them my title & change the info with my insurance, DCU took care of everything else. Shortened my term by 10 months, lowered my APR from 7.89 to 2.9, lowered my payments a little, & I also took advantage of their "no payment for 60 days" promo. 

Was also offered/approved for a DCU credit card with no additional inquiry. 

[Anonymous]

Sorry guys I forgot about this.

@Apple - do you mean 1 year old fromthe time I have purchased the vehicle?

@RM -I am definitely comparing both Penfed and DCU. I should also look at Alliant. Sucks that Nevada does not really have any good CUs..at least that I know of

@Rott- My scores were border line 600s in Dec of 2014. My mom co-sgned for me that helped me to get the 3.9% currently. I would like to get my mom out of as a cosigner and get even a better rate. 

@Jay - wow 4 months! Ok I feel better now because I thought I had to wait at least a year and I thought 6 months was too soon.

Thank you ALL for your responses Truly appreciate it