How long should I pay on my car before trying to get it refinanced at better rate and lower payments?

Question

My beacon score was really low when I purchased. I want to get mortgage on house and consolidate.

Answer 1

It's not so much about a magic length of time, as it is about the difference in your credit score and the difference in interest rates. You need to look very carefully into what you will save monthly versus the fees you pay to refinance. If your monthly savings over time don't amount to more than you pay out for the refinancing, it's a bad deal. In your particular siutation, you could still benefit if your payments are even a little lower. Banks will permit your to have higher monthly payments on your home loan because it stays nicely within their debt-to-income ratio. The catch-22 is that lenders may charge a higher interest rate to finance a used car versus a new car, and also a higher rate to finance a car older than a predetermined limit.

Answer 2

I would wait at least a yr. but no longer then that. you dont want to keep paing that intrest. Another thought I have is, If you have time wait till we have a Democrat in office,for about a year, Intrest rates on everything will drop and by then you will have well established credit and wont have a prob geting it done. I hope this helps. consolidation is a good idea. If you get a little extra you can also do repairs to the vehical and home and youll still pay less because all you will save on the intressed in the long run.

Answer 3

Here's a novel idea - sell the car, use the proceeds to pay off the loan (saving you ALL the interest) and anything that's left over can go to get yourself a beat-up old junker car with no payment.

Now your credit report will show you paid the vehicle off early and you won't have the payment hanging over your head! Plus you'll save all that interest (did I mention that already?) Take the money that you were using for car payments and put in savings every month to be used for the down payment on your house.