How common is it to refinance a car loan? Would I do it with my current lender, or through another lender? Under what conditions/in what situation does it make sense to refinance a car loan?
I have a 98 Saturn SL2. My outstanding balance is around $9,000. I have a
60-month loan, and have made nearly 30 payments on it. (For those doing the
math, I didn't put anything down, and also financed the sales tax.)
Anyhow, my payment is $308 a month. I'd like to lower that payment because I
am trying to get prequalified to buy my first house.
How common is it to refinance a car loan? Would I do it with my current
lender, or through another lender? Under what conditions/in what situation
does it make sense to refinance a car loan?
In my case, I'm not trying to refinance for a lower interest rate (currently
I pay 7.75 percent), but for a lower monthly payment. I realize this would
stretch the time to pay off the car, and result in more finance charges, but
I'm trying to do anything I can to buy a decent house.
(P.S. - Selling the car is not an option, as it has high mileage for the
year, about 55K, so I'd lose money, not to mention a reliable car I need for
my long commute.)
Any advice appreciated.
-I would think that if the car payment (which isn't all that high) is
what's between you and a decent house, you're probably not in a position
to purchase a house.
-I was in a similar situation once . . . I went to the credit union and asked