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So I just opened a new account at a credit union and found out my credit score is 803. We have a 1997 Nissan Altima that is going to die soon, and it may be in our best interest to replace it immediately. Does anyone have an idea of what kind of APR I'd be looking at for a car loan? My credit union's lowest was 3.5 and judging by how the woman at the CU talked to me about my score I'd be closer to that than the higher rates, but I know some dealerships run crazy low APRs to get people in the door.
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May 12, 2010 15:40
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Zeta Taskforce posted:3.5% is an amazing rate, and 803 is an amazing score. I知 a loan officer and I wish more of our borrowers had scores that high. The only question I have would be: Because 3.5% is such an amazing rate, are there things that you have to do in addition to get that rate, like have a checking account or direct deposit set up with them, or have your mortgage through them? I just signed up for savings and checking with them and set them up for my direct deposit. Zeta Taskforce posted:Because you are getting such a great rate, you will probably do better to negotiate a good price, see if they will give cash back in lieu of the incentive financing, and go through your credit union. We bought our last car through a credit union, and it was great to call the same person with questions. The company I work for now is set up with named customer service reps so you have the chance to build a relationship with the person who helps you. Thanks for the quick reply and advice. We owe more than twice what our house is worth, and our mortgage holders won't talk to us about modification until we're behind on our payments. Even though my name isn't on the loans, it is on the title so I'm bracing myself for a credit hit. I'd like to get ten years out of the car we buy, so I'm thinking this may be the time to do it.
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May 12, 2010 17:21
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Zeta Taskforce posted:I have mixed thoughts about loan modifications. I知 all for them when a borrower has lost a job or had some other unforeseen change to their life status, and they need a modification to stay in their house. I知 for them when a borrower did something dumb and bit off way more than they could chew when housing was booming, and is now sinking. The situations that I知 against are when people got a loan with reasonable terms, they can afford the payment, they have no plans to move, and they just happened to buy at the wrong time, and owe more than what its worth. You know your situation more than anyone, no one can stop you if you are OK with it, you certainly don稚 need my approval, but you should research any impacts to your credit, your tax situation, and anything else I知 not thinking of off the top of my head. Yeah we bought in 2006 with a no-income verification loan. We financed 80/20 with the 20% being a 15 year balloon. It was stupid, but we didn't lie about our income, and our income to debt ratio was just enough to barely squeak by. We weren't trying to flip our house or anything. We were hoping to be able to refinance to better terms when the house went up in value. We've managed to pay every month this far, but we had a renter and my wife was working two jobs, neither of which we have now. The house also needs a lot of work, and we don't have the money to do it even if we wanted to pour more money in to it. We've been struggling with not paying, but the house is now worth about 40% of what we owe in principal alone. The house across the street is renting for 1000$ less a month than what we pay, not including maintenance or repairs. We've sacrificed a lot to pay our debts, including thousands in back tuition that my wife got stuck with in her parents' divorce. My wife cashed in her 401K to buy this house, and we have no retirement savings. I just can't find the upside to continuing this situation when moving across the street would save us so much. We're not sure if we'll wind up being able to modify our loan or if we'll wind up with a short sale, but I can't see maintaining the status quo.
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May 12, 2010 19:33
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Zeta Taskforce posted:Most of the loan modifications out there reduce rates, I have not seen a lot of principal reduction modifications. That痴 what you really need since you just owe too much money. You might be better off pursuing a short sale. You won't qualify for another mortgage so you will renting a cheap place for a while you rebuild your savings and credit. A warning though, you may be taxed as regular income on any debt that is forgiven. We're working with a friend of the family who's been able to get some principal reductions recently. He's not charging us or anything, but he works at a real estate/mortgage/title/insurance company and has been through the process with his clients and his own house. We're in south Florida, so there's a lot of people in foreclosure here, and it seems that the lenders are starting to negotiate. I'm still not sure how much my credit will be affected, but I'm preparing for the worst.
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May 12, 2010 20:15
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