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Should i refinance?

Jeepsmashin

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Should I refinance ( modify ) my auto loan? I have 29 months left at 3.28% and I'm pretty sure I will qualify for 1.30% at the same 29 months which will lower my payment to about $23 less a month.

Is it worth it at this point? There's a $150 fee too.
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Rosco P

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If that's the extent of the fees and such and your math is good, you stand to save $517 over the next 2.45 years. On principle I would just to not give the money to a bank. But only you can decide if its worth the hassle. I refinanced a car at one point and it went fairly smoothly. I did it solely for the purpose of getting the loan out of a bank with poor online servicing. I moved to BOA which was easy as hell and their online servicing is one of the best.
 

gsbrockman

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Accelerate your current loan each month instead.
 
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Jeepsmashin

Jeepsmashin

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Thanks for the replies guys, I think I'll do it. I forgot to mention it's with the same credit union I already have the loan with.
 

SH556JL

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I would at that rate, probably be inclined to stretch it out to 36 months.
 

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gsbrockman

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SH556JL

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1.3% interest rate is damn good rate. If Iā€™m filling out paper work to refinance, I would stretch out. Lower payment, better money flow. Probably wouldnā€™t need to do it, wouldnā€™t need to refinance it either.
 

gsbrockman

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1.3% interest rate is damn good rate. If Iā€™m filling out paper work to refinance, I would stretch out. Lower payment, better money flow. Probably wouldnā€™t need to do it, wouldnā€™t need to refinance it either.
A lower interest rate would be the opportune time to accelerate the loan......and one could simply accelerate it by keeping the term the same, and make the same monthly (or higher, preferably) payment under the old loan terms.......thus fully utilizing the lower interest rate.

Extending the loan term just doesnā€™t make sense.....unless one is nearing repossession, then it (vehicle) needs to go anyway.
 

AcesandEights

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@gsbrockman You probably started with a 15-year mortgage too ;)

I remember how the finance officer looked when rates dropped and I refi'd from a 30-year to a 15-year loan, at about the same monthly payment. She said, it's one of the smartest things no one ever does, haha. Lower interest, find out how to make the same (or greater) payment for a shorter period of time and get out from under that loan.
 
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gsbrockman

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You probably started with a 15-year mortgage too ;)
Actually....I started with a 30 year in 2000, but after selling a piece of property, I refinanced at 15 years, then paid it off in 2009.

Nothing much more satisfying than filling out an auto loan application and putting in our homeā€™s value and then $0.00 for our mortgage amount. šŸ˜Š
 

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SH556JL

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A lower interest rate would be the opportune time to accelerate the loan......and one could simply accelerate it by keeping the term the same, and make the same monthly (or higher, preferably) payment under the old loan terms.......thus fully utilizing the lower interest rate.

Extending the loan term just doesnā€™t make sense.....unless one is nearing repossession, then it (vehicle) needs to go anyway.
Everyone has different opinions and reasonings. If Iā€™m going through the hassle, I would extend the terms a bit.
 

AcesandEights

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Actually....I started with a 30 year in 2000, but after selling a piece of property, I refinanced at 15 years, then paid it off in 2009.

Nothing much more satisfying than filling out an auto loan application and putting in our homeā€™s value and then $0.00 for our mortgage amount. šŸ˜Š
I was just updating my post when you posted. I did the same thing (refi'd), but I've got a few more years.
 

gsbrockman

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Everyone has different opinions and reasonings. If Iā€™m going through the hassle, I would extend the terms a bit.
I agree.

If refinancing turns into a hassle......Iā€™d simply leave everything as-is and accelerate the loan by $50ā€“$75 per month or so.
 

SH556JL

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I agree.

If refinancing turns into a hassle......Iā€™d simply leave everything as-is and accelerate the loan by $50ā€“$75 per month or so.
Donā€™t believe the OP mentioned (s)he was looking to accelerate their loan, only lower the payment.
 

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I don't get why you'd accelerate at that interest rate, or why you wouldn't keep a mortgage at the current low interest rates even if you could afford to pay the balance in full. The extra money could be invested and you could make a higher return, or you could build up a substantial emergency fund.
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