Refinance Help

[Anonymous]

Bought in 2017 - 2017 Kia Soul + Original loan $21,000 at 19.95% for 72 months. Now, it is $15,615 left on the loan and 36 months at 17.95%, payments $491. Got refinance offers from Capital One for the $15,615 remaining, 36 months at 10.97% with mthly payment $533 - second option, 32 months, 10.97%, payment $ 576 - last option, 29 months, 10.97%, payment $627. 

None of these options are saving me money, but was wondering if it makes sense to choose the first option just because it cuts down on the APR rate from 17.95 % to 10.97%. Scores are not good enough to refinance with credit unions and I am too afraid to waste a hard inquiry with anyone else. Any input will be greatly appreciated.

[DebtStinks]

All of those options save you money in interest from 17.95 down to 10.97. Since there isn't a difference in APR, I'd personally go with the longest term to get a comparable payment compared to your current loan.

Also, $491 x 36 months doesn't equate to the remaining loan balance you stated of $15,615 @ 17.97% APR.

You said you don't qualify for CU financing...do you know what your FICO scores are? Other reason(s) you think a CU wouldn't approve your refi?

Best of luck!

[Shooting-For-800]

Lowering your apr 7% for 36 months saves you over $1700 in interest.

[dunn2500]

 10 % is way better than 17% like peeps above stated.......only way sometimes refinances dont make sense is not enough of lower rate to offset interest ammortization ? .......you pay more interest in the begining of any car loan where halfway thru your not paying as much,  when you start a new loan the cycle starts over so.......your 3 yrs into your loan so you would have to see how much is going to interest now vs starting all over again......would have to believe 10% will beat 17% unless maybe were at very end of the loan, like last 2 years or something......

your monthly payment orig @ 17% is lower than refi @ 10% @ 36 months, seems kinda odd

[DebtStinks]

@dunn2500 , unfortunately you're 100% incorrect.

 10 % is way better than 17% like peeps above stated.......only way sometimes refinances dont make sense is not enough of lower rate to offset interest ammortization ? .......you pay more interest in the begining of any car loan where halfway thru your not paying as much,  when you start a new loan the cycle starts over so.......your 3 yrs into your loan so you would have to see how much is going to interest now vs starting all over again......would have to believe 10% will beat 17% unless maybe were at very end of the loan, like last 2 years or something......

your monthly payment orig @ 17% is lower than refi @ 10% @ 36 months, seems kinda odd

10% APR vs 17% APR on the same loan amount and term will ALWAYS equate to lower amount of interest. Yes, you will pay more interest in the beginning of any loan, but that's only because in comparison to the remaining payments your principal balance is higher...same said for the 17% APR loan at the beginning. It doesn't, however, mean that a 10% APR loan would have more interest than a 17% APR loan on the same loan amount.

PLEASE PLEASE PLEASE PLEASE people give either a) correct and helpful information or b) refrain from "helping" other members.

My 2 cents and rant. I'm out.

Have a great day!

[Anonymous]

Are you sure a credit-union can't help? Often there are a subset of credit-unions designed specifically to help non-prime consumers called CDFI credit unions. The key challenge in getting refinanced through a Credit-Union is that there are over 5,500 Credit-Unions so knowing who to apply to can be challenging!

https://www.ncua.gov/support-services/credit-union-resources-expansion/resources/ncua-cdfi-certifica...

These CU's are designed and setup specifically to help lower income and lower FICO score customers. Good luck, let me know if I can be of additional help.

[Anonymous]

Thank you for your response. It's good to get a better understanding of how the APR works for car loans.

[Anonymous]

Thank you for the link. I will definitely look into this.

[Anonymous]

This is definitely what I needed to see. When I first got the car in 2017, it was 19.95% APR and just recently it dropped to 17.95%. I've been making extra payments but just realized it wasn't helping to bring down the payments as they were counting towards the next month payment. Fighting a losing battle. 

[dunn2500]

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@DebtStinks wrote:

@dunn2500 , unfortunately you're 100% incorrect.

 10 % is way better than 17% like peeps above stated.......only way sometimes refinances dont make sense is not enough of lower rate to offset interest ammortization ? .......you pay more interest in the begining of any car loan where halfway thru your not paying as much,  when you start a new loan the cycle starts over so.......your 3 yrs into your loan so you would have to see how much is going to interest now vs starting all over again......would have to believe 10% will beat 17% unless maybe were at very end of the loan, like last 2 years or something......

your monthly payment orig @ 17% is lower than refi @ 10% @ 36 months, seems kinda odd

10% APR vs 17% APR on the same loan amount and term will ALWAYS equate to lower amount of interest. Yes, you will pay more interest in the beginning of any loan, but that's only because in comparison to the remaining payments your principal balance is higher...same said for the 17% APR loan at the beginning. It doesn't, however, mean that a 10% APR loan would have more interest than a 17% APR loan on the same loan amount.

PLEASE PLEASE PLEASE PLEASE people give either a) correct and helpful information or b) refrain from "helping" other members.

My 2 cents and rant. I'm out.

Have a great day!

---

Easy Tiger, I said MAYBE!, they seem to be exploring alot of options on term length.....in some cases it isnt always best , especially if stretching out lower rate for longer term or only dropping a few pts interest late in term of existing loan........maybe bad week 4 you idk......the point was to be aware of ammortization especially late in term and i never stated a 10% would have more interest  than 17% anywhere

I said OP posted his payments at 17% was lower than the new at 10%  for remaing 36 months which didnt make sense......

here it is below

" Now, it is $15,615 left on the loan and 36 months at 17.95%, payments $491. Got refinance offers from Capital One for the $15,615 remaining, 36 months at 10.97% with mthly payment $533"