|
|
| *Loan,banking and credit>>>auto loan |
How long should you want until you try to refinance an auto loan? |
My wife had no credit when I got the loan, but she has credit now and I want to add her to the loan, but to do so I will have to refinance. This could hurt my score? But could help my intrest rate. (Currently 13%) May credit has also gotten better since the loan. It's been 7 months now, I heard I should wait until a year. This is part of an article on different ways to defray costs and this is the part that talks about auto refinancing. Depending on your credit scores and how much you "rolled" into the new car loan (if you did it without financing anything in, great!), it may not be a great idea to refi your car because the money you save in interest, gets spread out because I don't think the refi calculates for the remainder of the term....i.e., I believe you are starting over with another 4, 5, or 6 year note. "Auto-loan rates vary hugely depending on your credit score and the length of the loan. Someone with a score of 740 or over can land a three- to four-year loan with a rate as low as 4%, Larsen said, with rates marching steeply higher from there. On average, people with a 720 score or above are paying 5% for a 60-month loan, a rate that rises to 5.7% for people with scores between 690 to 719, said Bob Kurilko, vice president of marketing for Edmunds.com, which tracks vehicle finance trends. Slip down to 675, and the rate spikes to 7.5%; below 640, and you鈥檙e in the double digits. Unfortunately, many buyers focus only on the monthly cost, so car dealers stretch out the loan -- jacking up the rate in the process -- to give them the lower payments they want, Kurilko said. 鈥淭he term is too long and the rate is too high,鈥?Kurilko said, 鈥渂ut it鈥檚 invisible to (car buyers) because they haven鈥檛 worked out the numbers.鈥? Those who notice they鈥檙e paying a much higher rate than they should based on their credit scores can try to refinance, but they鈥檒l get decent rates only if they have some equity in the car. Unfortunately, many buyers drive into the dealership still owing money on their last vehicle. 鈥淪ome people are $10,000 to $12,000 upside-down,鈥?Kurilko said. 鈥淭hat鈥檚 insane.鈥?br /> If you can鈥檛 refinance, Kurilko recommends 鈥渄riving out of the loan,鈥?keeping your current car at least until it鈥檚 paid off, rather than compounding your error by trading it on a new one. If you have some equity and want to look for a better loan, you can find rates, information and lenders at Bankrate, E-Loan and Cars.com, among others." Hope that helped a bit :) Source(s): http://moneycentral.msn.com/content/savi... no go for it now...why wait? We don't know what the interest rates will be in a year from now, If you could put some money with that re-finance that would be a big plus in your favor. Just keep in mind that you don't want to end up-side down meaning down the road that you owe more than its worth good luck. Ya at least wait a year or till the car's halfway paid off. it really wont hurt to test the water with one or two places; Now you have seven months of credit on your loan so know would be a good time. |
| Tags |
| mortgage loan consolidation loan commercial loan auto loan fha loan payday loan unsecured loan student loan personal loan |
SiteMap--Copyright/IP Policy--Contact Webmaster For personal non-commercial use only. |