Author Topic: Need Refinance advice on Auto on Home  (Read 649 times)

EricLThomp

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Need Refinance advice on Auto on Home
« on: July 13, 2018, 12:36:54 PM »
I'm interested in some advice for my particular situation.  I have about $16k in savings, and all my bills are on time.
Credit score 665(TU) and 683(Eq).

I have an auto loan and a mortgage, and I'd like to know if I should pay extra each month towards the principal or refinance AND pay extra towards the princial?
Here are the details:

Mortgage
Term (30 yrs) 15 remaining
$109,518 financed @ 5.875%
current payment $1,226 (incl insurance/escrow)
current balance $77,725
*Would pay additioal $1,000/mo, paying off in 2023 (10.5 years early),
saving over $28k in interest.
There's a second loan of $5,824 at 0%, so not too worried about that

Auto
Term (72 mo.) 51mo. left
$24,493 financed @ 11.2%
current payment $468.06
current balance $19,662 payoff
*Would pay additional $500/mo, paying off 1/2021 (2.5 years early),
saving over $3k in interest.
« Last Edit: July 16, 2018, 09:42:43 AM by EricLThomp »

RWD

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Re: Need Refinance advice on Auto on Home
« Reply #1 on: July 13, 2018, 12:44:34 PM »
For the mortgage you should refinance and then not pay extra towards principal.

For the car loan you should sell the expensive pickup truck, pay off the loan, and buy something reasonable with cash (e.g. Honda Fit, Toyota Corolla, or similar).

lbmustache

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Re: Need Refinance advice on Auto on Home
« Reply #2 on: July 13, 2018, 12:46:15 PM »
OMG the interest rate on the truck. Definitely refinance that. Also, your credit score seems a bit low - are you carrying a lot of debt? Savings don't factor into credit score.

patchyfacialhair

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Re: Need Refinance advice on Auto on Home
« Reply #3 on: July 13, 2018, 12:47:06 PM »
For the mortgage you should refinance and then not pay extra towards principal.

For the car loan you should sell the expensive pickup truck, pay off the loan, and buy something reasonable with cash (e.g. Honda Fit, Toyota Corolla, or similar).

Unless you "need" the truck [be honest, you probably don't], this is the correct advice.

Calvawt

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Re: Need Refinance advice on Auto on Home
« Reply #4 on: July 13, 2018, 12:50:30 PM »
Do you know what it impacting your score for it to be so low?  You really need 700-720 to get better rates and higher than that to get the best ones.  If you have that information, its not unreasonable to get your score pushed up to get even better rates.

That being said, your scores are high enough to refi both of those items and get lower rates.  I won't speak to if you need to keep the truck, but if you do keep it refi it right away.

frugaliknowit

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Re: Need Refinance advice on Auto on Home
« Reply #5 on: July 13, 2018, 01:21:49 PM »
Hair on fire:  51 more months @11. 2%, yeeeee gadz!!!  Kill that truck loan first and foremost.  Best to get rid of the truck, pay off the loan and buy something for cash.  If you HAVE TO have the truck, re-fi it.

See if you can get your credit score to/above 740, then refinance the real estate.  Your score might go up if/when you ditch the car loan...?