I Got an auto loan almost 1yr ago from my credit union at 6.6% over 84mos. My payment is around $564/mo and I have been paying anywhere from $800-$1200/mo on it. my credit union uses mortgage scores for all there lending an I believe I was at 650 at the time. My question is if I refinance the loan is the refinance based off of the actual balance left on the loan or the actual balance plus any interest that would have accumulated over the life of the whole loan? or does it just depend on who I refinance through? Also when doing a refinance how does it report to the credit bureaus? This is my 1st auto loan ever so an imput would be much appreciated.
When an auto loan is paid off the lienholder will give a 10 day payoff, typically. As long as payment is received within the 10 days, the loan is considered paid. So when you refinance the new lender will base it on that payoff.
Best wishes on the refinance. Hopefully you can find terms that do not extend the loan's length or long you make payments.
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@GTS wrote:I Got an auto loan almost 1yr ago from my credit union at 6.6% over 84mos. My payment is around $564/mo and I have been paying anywhere from $800-$1200/mo on it. my credit union uses mortgage scores for all there lending an I believe I was at 650 at the time. My question is if I refinance the loan is the refinance based off of the actual balance left on the loan or the actual balance plus any interest that would have accumulated over the life of the whole loan? or does it just depend on who I refinance through? Also when doing a refinance how does it report to the credit bureaus? This is my 1st auto loan ever so an imput would be much appreciated.
Your current loan is likely a simple interest loan with no pre payment penalty.. meaning you'll have the principal balance due and any unearned interest is waived. The new loan will report as a new installment account with 100% balance remaining on your bureaus.
My question for you however is why are you considering refinancing this loan? You are already making very good progress on paying down your balance and loan rates aren't better now than you received then.
@fury1995 wrote:
@GTS wrote:I Got an auto loan almost 1yr ago from my credit union at 6.6% over 84mos. My payment is around $564/mo and I have been paying anywhere from $800-$1200/mo on it. my credit union uses mortgage scores for all there lending an I believe I was at 650 at the time. My question is if I refinance the loan is the refinance based off of the actual balance left on the loan or the actual balance plus any interest that would have accumulated over the life of the whole loan? or does it just depend on who I refinance through? Also when doing a refinance how does it report to the credit bureaus? This is my 1st auto loan ever so an imput would be much appreciated.
My question for you however is why are you considering refinancing this loan? You are already making very good progress on paying down your balance and loan rates aren't better now than you received then.
@fury1995I guess I was just looking at options the future. I am 2 weeks short of 1yr on this loan and already have paid 19% of it off. It does seem to be simple interest though because my interest charge for each month is around $129. I guess I was just thinking in terms of a week after I had got the loan my Credit Union (Redwood Credit Union) was doing a promo for 3.5% on car loans through their dealership and it made me feel like I got a high rate. I am also aware now that with the way things are now that I may have a low rate. You have definitely giving me something to take pause and think about so thank you.
