I've checked online at different banks/loan sites and it seems my payments would be higher than what I pay now. Why is that? Any suggestions.
2006-08-26 11:44:39 · 6 answers · asked by CaramelHoneyLuv 1 in Business & Finance ➔ Personal Finance
Because it really is more expensive to refinance--no matter what type of loan it is.
Also, refinancing usually forces you to extend the loan period, causing you to pay more in interest in the long run; plus there's a good number of new fees along with it, because it's considered a "new" loan.
As someone once told me, "Only an idiot refinances to try and save money." I'm assuming you're not an idiot.
2006-08-26 11:57:05 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The beauty of refinancing a car is that unless you had horrible, no-good, very bad credit to begin with, you will probably not gain a significantly lower interest rate by refinancing. This has to do with the fact that you are charged fees for the refinance, and you are essentially requesting a loan for a used vehicle, for which most banks charge higher interest rate. It's a higher rate because it's riskier for the bank, as the expected value of the car will probably be less than the amount of the loan.
2006-08-26 18:46:35 · answer #2 · answered by Freddie 3 · 0⤊ 0⤋
Its like a used vehicle. If you have a credit union look into refinance with them. Don't know if your a homeowner, but take the money out from you home. At least you can write the interest off. Don't know if you have a retirement account from your job. mine will allow me to take loans out from it and pay myself back with interest. Some credit cards will allow 0 intrest for a year for new card holders. Just juggle the money around till the time expires and open another account.
Just some ideas.
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2006-08-26 12:27:22 · answer #3 · answered by Grandpa Shark 7 · 0⤊ 0⤋
You will have to take a look and the length of the loan and the interest rate. If you are repaying over a shorter period of time, your payments may increase, but you probably are saving on interest over the life of the loan.
2006-08-26 11:49:25 · answer #4 · answered by limgrn_maria 4 · 0⤊ 0⤋
My first guess is that: If you bought the truck new, you'll never get a better rate than you have now because now it is considered a used vehicle. If you own a home refinance that with your truck.
Good luck
2006-08-26 11:58:12 · answer #5 · answered by fred f 2 · 0⤊ 0⤋
Try a credit union. You might have to find a friend or family member that has a account with a credit union. Their rates are so low.
2006-08-28 21:15:21 · answer #6 · answered by V 3 · 0⤊ 0⤋