Eay Guys,

Need some opinions or feedback about refinancing. I'm currently financed through IFS and am thinking about refinaning through credit union, bank, or what have you. I wanted to get some info before I go out there. I purchased an infiniti over a year ago and had my pops co-signed, I've since bit the bullet and traded it in for a car that is under my name. Didn't have credit before I bought my first car, but over a year of on time payments I do have some credit. So going for the main question. Is it wise to refinance now, or should I stay with IFS for a year to build my credit before refinancing. Any input would be appreiciated and thanks!

 

Allow me to direct you to this link for all the answers you need.
http://www.carbuyingtips.com/refinance.htm

 

What kind of rate did you get with IFS and what kind of rate you can get from other lending company now? it only make sense if the difference are more than 2 points, its never good idea to have newly funded loan on your credit report.

 

u can get an estimate if you will save money each month but it's not like a mortgage that it'll drop down so much.

 

Well I was able to get a rate of 5.5% from a credit union. My current rate is 7.5%. I guess it's a go with the credit union, although I haven't had time to check out the online finance companies.

"What kind of rate did you get with IFS and what kind of rate you can get from other lending company now? it only make sense if the difference are more than 2 points, its never good idea to have newly funded loan on your credit report."

limeg35, you brought up some info that I'd like to look into further....the only makes sense if it's 2 points or more and having a newly funded loan....I've brought this up to my bank and credit union and both have disagreed. I sway on your side and have a feeling the banks don't want me to know better. Can you add some reasons to your statements, and also to others that can shed some light on this. Thanks!

 

Ummm...What did I get myself into this time, besides put my shoe in my mouth again...

First, which part they do not agree? the 2 points part or regrading the newly funded loan will reflect badly on your credit report?

If its latter part? when you have a loan or any type of credit that the current balance is near or at its high limit, as with any recent funded loan will have, its never good to other creditors. However it wont matter much if you are not planning on appying other loans or getting credit card with high limit soon. I find it out myself last year, I just got a new car loan for my G35 in May and I was shopping for another car loan in late Aug. that same year, I had hard time to get myself pre-approved and had been trun down by couple of lending company or have been approved but with higher rate than I would like.

If its the 2 points part? I said two points was just to throw out an number and was not base on any particular fact or reason...but lets take look at that two points, what kind of difference would it make when you want to refinance...assuming couple things just for calculation sake and it is not exact...

old loan amount of 35k for 5 years with 7.5% interest rate...

its 701.32 per mos and overall interest paid is 7079

after one year and you are looking to refinance it with two points lower...

new loan amount of 28500 with 5.5% rate...

its 544.38 for other 5 years and overall interest paid is 4162 plus about 2k you paid for the old loan, total is 6160.

or its 662.80 for only 4 years and overall interest paid is 3314 plus 2k for old loan, total is 5314.

With 4 years refinance loan you would have saved nearly 1.7k over the life of the loan but the payment is only around 40 bucks less, With 5 years refinance loan you will only saved about 900 bucks but the payment are 150 less per month but you will have to pay your car loan for 6 years...so I dont think refinance it with anything less than 2 percent makes much sense, especially if there are refinancing fees involved.

*Edit* The 5.5% you getting from your credit union is that for new car loan or its indeed for an refinance car loan? I would think 5.5% is about going rate for new car loan from credit union, usually refinance loan is about 1.2~1.5% higher than new car loan, so I am just double checking.