Refinancing 2011 Hyundai Elantra

[chrisvm31]

Originally Posted by czarin

I just got a 5.13% with capital one. I want to try chase to see if they will be much lower and then I can make a final decision between both of them.

Your choice, but they will have to do a "hard pull" of your credit report, which means it will be a negative mark on your report. Understand that saving 1% here could cost you far more later on in terms of not qualifying for other loans and/or preferred interest rates. With all due respect, I'm not sure how admittedly, you lost approx. 50 points within about a year; but certainly it is clear that you're not making great financial decisions with respect to this refinance.

I do wish you luck, I just hope you make the right choice and think about this before jumping the gun.

[dmlexpert]

Based on a 72 month loan at 5.13% vs 5.9%, the monthly payment goes down about 6.50 a month. And that does not account for any fees involved with processing a new loan. It is entirely possible that a new loan's fees and other hidden costs would wipe out any potential savings, leaving you with a lower credit score and the same dent in the monthly budget.

I suspect you'd need to get down to 3.5% or lower before it made any sense at all. And if the credit score is in the mid 600s, getting a 3.5% rate approved may be a bit of a challenge. As I mentioned before, banks can be fussy about who gets the money and who doesn't, and all too often, people refinance their loans only because they are in financial trouble, and so banks are understandably skittish about these types of loans.

[czarin]

For sure, my credit score will really be hit from the inquiries I did today. However, the inquiries decision have already been made so I will just go with the lowest rate of the inquiries. I am still waiting for chase final decision. I am very sure of getting something lower because they are the one that really been offering me pre approve APR. If their rate is not lower than 5.13%, then I will go with capital one which will lower my current APR by 0.77% and monthly payment by $17.8 for the same 62 months I have left currently. Thanks very much for your views and advices. I will see I things go finally if I hear from chase tomorrow. I have not had any problem paying my monthly payments for my previous and present car. I usually pay at least a week in advance and pay more than what is due.

[satan (not that one)]

Can you refinance through Hyundai Motor Finance? I bought my car at 1.9% and I have less than perfect credit.

[dmlexpert]

Sounds good. Since the process is underway, it is far better to go through with it. You will save the money on the monthly payment, and if you continue to pay what you have been paying, you will shorten the term of the loan. Once this process is completed, continue paying a week early and keep the banks happy. Best of luck and let us know how it works out.

[czarin]

My current financier is Hyundai Motor Finance. I just made a mistake during the purchase. Everyone goes through some kind of life lesson, that was one of mine. I will have an update tomorrow

[GinoCarl]

what are the cons if you refinance a car?

[crcendo]

Try a local credit union? Rates are generally good, and a don't "appear" to be quite as greedy as big banks.