Should I refinance my car loan?
I have a 2018 Nissan Sentra I bought new. At the time I bought the car I didn't have good credit. The loan is for 63 months with the interest rate at 16.15%
The remaining balance is $9000.The monthly payment is $349. 42 months payments remaining.
My FICO score is now 734.
Should I consider refinancing?
- Beverly SLv 74 weeks ago
Yes! But do it for no more than 42 months... Better yet, do it for 2 or 3 years.
- JudyLv 71 month ago
- ibu guruLv 71 month ago
Who is your lender? Your bank? You'd be refinancing now as a USED vehicle, if it is even possible, and it might not do you any good. Have your banker run the numbers & see if this is really worth the time, effort, costs of doing.
However, a big payment toward principal on the loan will get it paid off much faster, reducing your interest cost. See if your loan contract allows advance payment of principal, then give your banker a nice fat check (say, $2000 or so?) specifying it's to be credited toward principal. This payment would be best in person to ensure your banker credits it properly, and is in addition to your regular monthly payment for that month. This type of thing is one reason why it can be worthwhile to deal directly with your own bank for a car loan, etc.
- A HunchLv 71 month ago
You should look into refinancing.
But you need to watch for the interest rate and any refinancing fees.
If you only owe $9000, you put down a decent downpayment.
Next time, buy a used car for cash.
- How do you think about the answers? You can sign in to vote the answer.
- Anonymous1 month ago
1) You get a significantly lower interest rate; and
2) You do not take a loan term longer than 42 months.
- ScottLv 71 month ago
Only if you can get a better interest rate (9% or less).