Would you refi?

[Anonymous]

DH bought his car in February ('15 Golf). It's financed with VW Credit. We've had other cars with them as well as with our local CU. He was offered virtually the same rate 3.9% with both this time so went with VW to get a bit more stuff out of the dealer, IIRC. 

He's since had some SL baddies removed and his EQ Auto Score 5 went from 668 to 760 and has probably gone down a bit due to the second side of a BT posting. 

I chatted/called both our local CU and DCU. Local, 770 EX required for best rate. DCU, I asked what the drop down categories were for their rates. I typed what agent said and I have: 

+ 675 = Superior credit

674-640. = excellent credit

639-620 = avg credit

620 = good ( I think the rep actually said 'good luck)

And I think the best rate, according to online, goes down to average credit. Even if it goes down to excellent, he'd be fine. But I wonder if those 6's should really be 7's. I can chat back. But let's assume that Excellent is 740-774, I think he's still good. 

Would you refi a few month old loan from 3.9% to 1.74%? At roughly $25k it'd be $25-$30 a month difference. Is it worth the hassle, HP's, and new account? 

[Anonymous]

I think this comes down to what is more important to you.....the savings (which I feel is borderline) or the effects of the new loan on your credit. For me if I wasn't planning on applying for anything major in the future I would take the HP to save $25 a month, it certainly isn't much but could be put to a better use than interest. 

And those were definitely meant to be 7's.

[Anonymous]

Are there any loan origination fees with these CUs?

[EddieK]

Yes, 675+ will get DCU's best rate.  Would I refinance in your situation?  Absolutely!  Depending on how long you financed for, your loan is only 2-3 months old right now, that $25-30/month will add up over the next 4-5 years.

[Anonymous]

IMO 30 bucks is 30 bucks.  To put it in perspective that is $1,800 over a 5 year loan.  IDK about you but I have a lot I could do with $1800

[StartingOver10]

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@Anonymous wrote:

IMO 30 bucks is 30 bucks.  To put it in perspective that is $1,800 over a 5 year loan.  IDK about you but I have a lot I could do with $1800

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^^^This. Look at it long term - yes it is worth it to save $1800.  And if you search on the forum you will see that DCU does mean 675 and above qualify for their best rates so your husband is well above that...

[ezdriver]

If you really can secure such a rate on a refi, then do it.

[6speed8]

In December 2008 we traded my fiance's 2008 Sonata for a 2012 Kia Forte SX 5 door. The Sonata was purchased used in 2008 financed through Capital One. His credit was "ok" at the time. They sent us a pre-approval for another car loan for $21,200 in December 2012 even with having $5300 left on the Sonata. He wanted a new car only because the Sonata was over 100,000 miles - very trouble free though. The Forte with the "dealer add-ons" was stickered at $24,800. I talked them into simply taking the Sonata off our hands which they did, and $21,200 for the Forte. They asked if they could try to get a better rate than Capital One. They did through TD Bank. So the new Forte payments were going to be $45 less than the 100,000+ mile Sonata. A couple of weeks ago, Capital One offered to refinance the Forte so we filled out the application. Came out 3% less than the TD rate and with the loan duration being the same duration as the payments left with TD, we're saving another $55 per month.

[Anonymous]

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@6speed8 wrote:

In December 2008 we traded my fiance's 2008 Sonata for a 2012 Kia Forte SX 5 door. The Sonata was purchased used in 2008 financed through Capital One. His credit was "ok" at the time. They sent us a pre-approval for another car loan for $21,200 in December 2012 even with having $5300 left on the Sonata. He wanted a new car only because the Sonata was over 100,000 miles - very trouble free though. The Forte with the "dealer add-ons" was stickered at $24,800. I talked them into simply taking the Sonata off our hands which they did, and $21,200 for the Forte. They asked if they could try to get a better rate than Capital One. They did through TD Bank. So the new Forte payments were going to be $45 less than the 100,000+ mile Sonata. A couple of weeks ago, Capital One offered to refinance the Forte so we filled out the application. Came out 3% less than the TD rate and with the loan duration being the same duration as the payments left with TD, we're saving another $55 per month.

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Sounds like a great deal! Everyone talking about Cap One for auto loans on here, I did check into it. But they don't do auto loans in California. 

[ds3]

Sounds like a great deal! Everyone talking about Cap One for auto loans on here, I did check into it. But they don't do auto loans in California. 

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Sure they do, they have a bunch of eligible dealers in the IE alone. The problem is they max out at $40k, which really limits your options as far as what you can purchase.