I just bought an 07 Civic Si last month. I didnt make any payments yet (just the downpayment). I got my loan thru the dealer at 8.6%, I checked elsewhere..and its 5.99%. Should I take the 5.99% to pay off the 8.6%? Or is that just wasting my time? And I'm not sure if this is "re-financing" since its only been a month. Thank you for you help..
2007-02-15 04:35:07 · 3 answers · asked by BeBe b 2 in Business & Finance ➔ Credit
Yes, I'd try to get a lower rate. 8.6 for a new car is a little high. Doesn't mean you have bad credit, but maybe not enough credit history.
Before you refinance, be sure to read the fine print. Make sure it's 5.99 Fixed throughout the life of the loan. Ask about payment options -- can you pay online as well? Is there a prepayment penalty if you decide to pay the whole thing off before your maturity date? (I think that's rare though)
good luck!
2007-02-15 05:13:22 · answer #1 · answered by snowraider 3 · 0⤊ 0⤋
Yes, its refinanicing-- the definition of which is taking one loan to pay off another.
Are you sure that you qualify for the 5.99%? Often that's why you didnt get the best rate-- you didnt qualify.
Google loan calculators and play with the numbers--- see if it makes sense for you to go through the trouble.
2007-02-15 12:40:56 · answer #2 · answered by Anonymous · 1⤊ 0⤋
If you plan on owning your car and keeping it after it is totally paid off, you would definitely be a good idea to refinance.
2007-02-15 12:42:47 · answer #3 · answered by Kerry 7 · 1⤊ 0⤋