Refinancing. Do it or not?

[Anonymous]

a) myfico score 735

b) employed with 70k

c) CC with less than 5% util and 3k+ limits

d) no loans except current auto loan; amount owned=19.500k; APR=6.85%; loan age~7months;

e) two more auto loans in the past; payed off with no lates etc

f) no lates on any of my loans ever;

I was hoping to try to refinance with CapitalOne/Chase/BankOfAmerica within next week and see what kind of APR I can get.

Also I'm planning to cut my loan length to 48 months along;

Having 19.5k current balance I can pay ~2k extra and when applying for refinancing request ~17k for a new loan.

Q1: what kind of APR can I get? (model year of the car is 2008 with less than 10k on ODO)

Q2: does it worth trying to lower the APR at all and hurting the score with new inquires?

Q3: what banks can be considered a good place to go considering configuration upper? If any..

Q4: never used CUs. Maybe worth trying to go to CU for a loan like this?

thanks in advance for your help. 

Message Edited by protege on 01-09-2010 10:32 PM

[Jazzzy]

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@Anonymous wrote:

a) myfico score 735

b) employed with 70k

c) CC with less than 5% util and 3k+ limits

d) no loans except current auto loan; amount owned=19.500k; APR=6.85%; loan age~7months;

e) two more auto loans in the past; payed off with no lates etc

f) no lates on any of my loans ever;

I was hoping to try to refinance with CapitalOne/Chase/BankOfAmerica within next week and see what kind of APR I can get.

Also I'm planning to cut my loan length to 48 months along;

Having 19.5k current balance I can pay ~2k extra and when applying for refinancing request ~17k for a new loan.

Q1: what kind of APR can I get? (model year of the car is 2008 with less than 10k on ODO)

Q2: does it worth trying to lower the APR at all and hurting the score with new inquires?

Q3: what banks can be considered a good place to go considering configuration upper? If any..

Q4: never used CUs. Maybe worth trying to go to CU for a loan like this?

thanks in advance for your help. 

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Have you looked at PenFed? They have an online auto loan rate of 3.99% that we got this fall.

Message Edited by LynetteM on 01-10-2010 11:13 AM

[Anonymous]

I'm not qualified to join PenFed (from what I see on their website)

[Jazzzy]

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@Anonymous wrote:
I'm not qualified to join PenFed (from what I see on their website)

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I believe many people have joined PenFed by paying a $25 membership to some sort of military family support organization. If you ask about membership on the Credit Card forum, they can tell you.

I qualified by being a Red Cross volunteer. It's not tough to qualify for membership. Then you open up a $5 savings account. They do a hard pull on EQ for that, and then within 90 days you can apply for their credit cards, auto loans, etc. on the basis of that one hard pull.

Have you checked with any local credit unions? Many people have had great experiences with both local and national credit unions.

[Anonymous]

I will try that. Thanks.

[MattH]

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@LynetteM wrote:

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@Anonymous wrote:
I'm not qualified to join PenFed (from what I see on their website)

---

I believe many people have joined PenFed by paying a $25 membership to some sort of military family support organization. If you ask about membership on the Credit Card forum, they can tell you.

I qualified by being a Red Cross volunteer. It's not tough to qualify for membership. Then you open up a $5 savings account. They do a hard pull on EQ for that, and then within 90 days you can apply for their credit cards, auto loans, etc. on the basis of that one hard pull.

Have you checked with any local credit unions? Many people have had great experiences with both local and national credit unions.

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According to their website people who do not fall into the other categories may join by joining the National Military Family Association (NMFA) for a modest fee.

[marty56]

IMHO great time to refi.  I just refied my 5.4 loan to 3.7 at RBFCU.  The 5.4 rate was at another CU and at the time, their best rate.

[Anonymous]

You'll want to find out what you car is actually worth, that will often determine what you get as far as refinancing goes.  If you post the make and model as well, some of the people on here can help you detemine that.  Banks often are not willing to refinance for more than the value of the car, and with you being only 7 months into your loan, that 19.5K is probably more than it's worth.  IMO, paying the extra 2K now and bringing the balance down will help you get the kind of refi you want.