When Can I Refi?

[baglady215]

I am buying a house in the fall but I really want to refi my 16.4% auto loan (2 months old). I know, terrible, but I had no choice and I knew I would refi shortly after.

I don't think I should refi before the mortgage, right? So how soon afterwards can I refi? Right after closing? A month or two after? Thanks.

[Anonymous]

as soon as the closing docs are signed. good luck on both.

[Anonymous]

I'd do 6 months after you settle in.

Thanks

[Anonymous]

why/ installment loans and inq's aren't a major ding, so there won't be a traumatic score drop. of course that depends on the bucket op is in, but (no offense op) at such a high rate now i doubt that applies. why pay that extra money for 6 months?

[Anonymous]

I refi'd my car loan (13.45% w/ carmax from Aug through Dec.) with a local CU for 7.1% in late Dec.  I just applied for a mortgage and it doesnt seem to be any problem at all.  The thing is, depending on what your new interest rate will be, the very minor hit you will take from the inq and slightly different average age, may end up being offset by the large difference you will see on your DTI ratio.  (my payment only went down $10, but I knocked a whole year off the loan too).

I guess what I am saying is do the refi, save yourself some money (for a larger downpayment which will also help you).  And allow the refi and inq 6 months to normalize.

Message Edited by Drachen on 03-24-2008 10:17 AM