Is it a good practice to refinance a car or truck. I recently purchased a home and the payment is somewhat large. I was in need of transportation before I purchased the home. I was thinking It would hinder the mortgage process if I bought a new vehicle before the house. I want to know is it worth refinancing the auto to make my money and budget work out. I did not buy this auto just to be buying, I bought it because of need and the condition of my 92 van is horrible. There is no heat and many other things.
Any advice is appreciated.
2006-12-14 06:58:48 · 3 answers · asked by jawsnu7 2 in Business & Finance ➔ Renting & Real Estate
You may not be able to cash out when you refinance your auto. Becuase it has a declining value the only thing you would benefit from is smaller monthly payments by shopping for a better rate and getting a longer term. I am curious about the mortgage you have. You may be in the wrong product. There are so many mortgage options availbale that you could refinance to have a more suitable payment plan for your current financial situation. Feel free to email me if you have any questions or are looking for details geared towords your situation. Just remember you have to decide if your priority is a lower monthly payment and higher interest in the long term.
2006-12-14 07:12:54 · answer #1 · answered by Yisrael Chai 3 · 0⤊ 0⤋
Refinancing a car is a very bad idea. The value depreciates faster than you can pay it off. If you refinanced it after 3 years into a 5 year payment plan, you might be able to get a lower payment but you would be paying more in the long run.
2006-12-14 07:09:53 · answer #2 · answered by Joe K 6 · 0⤊ 0⤋
there a strict rules on refinancing vehicles depending on the lending company - such as age, mileage, etc. you should try to lower your interest rate by at least 3 points, but you don't want to extend your term either. try citifinancial auto, they do refi's and you can do it online
2006-12-14 07:09:02 · answer #3 · answered by g_neva 2 · 0⤊ 0⤋