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Hope it is OK that I post this as a new thread - didn't see anything existing that seem to fit this question. So, back in June, I bought a CPO vehicle for ~$23k before taxes/fees, putting $14k down. I financed the rest with a loan from Fifth Third - principal ~$14k, 5.78% APR, 72 month term (goal to pay off in 60 months or less). Currently ,my auto loan balance is almost exactly $10k, or at least until I make my April payment. Since taking out this loan, I've managed to pay off a lot of debt and my credit score has improved dramatically (from ~715 to ~804 at my last check). My question to you all: is it worth refinancing this loan at this point? According to Mint, if I make my minimum $230/mo payment, the loan will be paid off in exactly 4 years time (I plan to pay more than the minimum, so hopefully sooner). Still, even at the minimum monthly payment, Mint's loan calculator suggests I will only end up paying ~$1.1k of interest over the lifetime of the loan - presumably less if I keep paying off extra principal every month. With this in mind, is it worth refinancing my auto loan now that my credit score is much better? I did a little poking around and have gotten pre-approval APRs in the ~4.25 range or so. Will a lower APR be worth the extra fees/hassle of refinancing, or does it make more sense to stick with the loan I have now given how much I have prepaid? Thanks all!
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Mar 28, 2019 17:18
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| # ? Apr 29, 2024 11:22 |
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Auto financing is typically free and easy, all you have to do is do whatever title lien paperwork the lender asks you to do and send them a payoff quote from your current lender. it is free money even if it's only a couple hundred dollars over the life of the loan. Chances are very good you can get a better rate than 5.8% by shortening your term. You should have no trouble finding rates under 4% for 36 month loans.
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Mar 28, 2019 17:26
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BEHOLD: MY CAPE posted:Auto financing is typically free and easy, all you have to do is do whatever title lien paperwork the lender asks you to do and send them a payoff quote from your current lender. it is free money even if it's only a couple hundred dollars over the life of the loan. Chances are very good you can get a better rate than 5.8% by shortening your term. You should have no trouble finding rates under 4% for 36 month loans. Thanks! I will look into this, then. If it's a free $300, I'll take it. I'll probably look for a 60 month refi as I like the flexibility of the longer term, as long as the loan doesn't have any prepayment penalties. Any lenders I should look for? Or will the Nerdwallet/Credible aggregate suffice?
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Mar 29, 2019 23:18
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Kommienzuspadt posted:Thanks! I will look into this, then. If it's a free $300, I'll take it. I'll probably look for a 60 month refi as I like the flexibility of the longer term, as long as the loan doesn't have any prepayment penalties. Rates vary based on term, shorter term is always cheaper.
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Mar 30, 2019 06:38
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Kommienzuspadt posted:Thanks! I will look into this, then. If it's a free $300, I'll take it. I'll probably look for a 60 month refi as I like the flexibility of the longer term, as long as the loan doesn't have any prepayment penalties. Penfed is great for any auto loan needs.
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Mar 31, 2019 13:48
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| # ? Apr 29, 2024 11:22 |
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thanks all!
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Apr 1, 2019 13:54
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