Refinance Now or Wait?

Anonymous · ‎03-03-2011

I have an 07 Honda Accord Coupe that I have financed at around 17%. I stopped by my company's CU today and asked about refi-ing, even though I am a little bit upside down on the car. When I purchased the car initially, my UTIL was around 90%. In the past 6 months I have gotten that down to around 43%, and I paid off one of the cards this morning, but that won't post til the end of the month. After that, it will be around 31% UTIL.

They did a pull on my credit and they said they could refi me at 8.99% for 6 months less than my original loan, so I'd be saving money both ways. My question is, should I take this offer, or wait until next month when my payment from today posts to the credit reports, or even maybe wait two months until I have my final 31% paid off?

Or, can I refinance NOW and then again in a couple months? She said I would have to pay $75 but it may be worth it if, when my UTIL is down to 1% I may get a lot better rate? The only thing I am worried about is the inquiries. I have a lot (although many of them were within a two week period) and I don't want it to kill my credit that I am woring so hard to improve.

So: Refinance now at 8.99% (which I already have an inquiry for), or wait and refinance later. Or do both? Or, only do it now and then not get another inquiry once my UTIL is 1%.

I will say I was so proud that I was "instantly" approved for it. First time I've ever heard that. The tips I learn here help me so much.

ALSO I forgot to mention that by next month I should have a 90-day late removed from a student loan which should boost my score!

Anonymous · ‎03-03-2011

@Anonymous wrote:
I have an 07 Honda Accord Coupe that I have financed at around 17%. I stopped by my company's CU today and asked about refi-ing, even though I am a little bit upside down on the car. When I purchased the car initially, my UTIL was around 90%. In the past 6 months I have gotten that down to around 43%, and I paid off one of the cards this morning, but that won't post til the end of the month. After that, it will be around 31% UTIL.

They did a pull on my credit and they said they could refi me at 8.99% for 6 months less than my original loan, so I'd be saving money both ways. My question is, should I take this offer, or wait until next month when my payment from today posts to the credit reports, or even maybe wait two months until I have my final 31% paid off?

Or, can I refinance NOW and then again in a couple months? She said I would have to pay $75 but it may be worth it if, when my UTIL is down to 1% I may get a lot better rate? The only thing I am worried about is the inquiries. I have a lot (although many of them were within a two week period) and I don't want it to kill my credit that I am woring so hard to improve.

So: Refinance now at 8.99% (which I already have an inquiry for), or wait and refinance later. Or do both? Or, only do it now and then not get another inquiry once my UTIL is 1%.

I will say I was so proud that I was "instantly" approved for it. First time I've ever heard that. The tips I learn here help me so much.

ALSO I forgot to mention that by next month I should have a 90-day late removed from a student loan which should boost my score!

What are the lowest rates being offered?

8.9% is really good for a used car with negative equity, unless you got a smoking hot CU I do not see you going below 5.9%

So you instead of asking us you should ask your Cu is that their low rate?

In addition, the new loan is 6 month less then the old loan, does that mean you are retaking out X years minus 6 months, or that the new loan will end about 6 years from the old one. If you are re taking out a full X-6 month term, you may wish to drop the new term by a year or two just so you are not making your last payment as your car becomes 10 years old.

Anonymous · ‎03-10-2011

I signed the refi paperwork yesterday at 8.74% (.25% discount for autopay.) They said once I get my credit score above 680 (it is at 657 according to their Experian pull now with a 90-day late that will be removed once my student loan updates, it is already off of my EQ) that I can refinance at 5.5% and if I get above 720 (which looks doable if I get my Util down from its current 45%) I can refi at 4.4% For a used car refi that is pretty good! And it is nice because they use the retail value of the car so I thought I would be upside down, but turns out I owe less than what it is worth (according to t hem).