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Auto Refinancing...

June 18th, 2013 at 07:12 pm

Today I did something to that I've been wanting to do for at LEAST 6 months.

I went to my bank to see if I could refinance my vehicle...

My loan info:

current balance: $8,461.02
interest rate: 11.5%
months financed for: 63

My goals:

1. lower rate
2. lower payment
3. get parents removed as co-signers

So I went with both my parents because:

1. I can't drive since I've just had surgery
2. I may have to have them co-sign on my loan again if I can refinance.

So in we walked and I met up with one of the bankers. He asked me if I knew my credit score an I stated about 660-ish (I know that it's come up a lot in the past 10 months).

So he stated off-hand that if that's what the credit report pulled then I'm looking at a 9.5% interest rate. Well that's a LOT better than what I had so I went ahead with it.

He pulls my report and it says 675!

So he starts writing up the paperwork as I'm watching the computer screen.

He says my interest rate is 7.1%! WHOOHOO goal 1 accomplished!

He says my payment is down to $202.91! WHOOHOO goal 2 accomplished!

Then I sign all the paperwork and he says that's it... I asked "My parents don't need to co-sign?" "Nope", he says.

GOAL 3 ACCOMPLISHED!

So these are the great points I accomplished with the refinance:

I refinanced for 48 months. I had 50 months left on my original loan so no matter what I'll be paying off this loan 2 months earlier than planned.

I've already paid approximately $1,100 in interest so far but with the refinancing I will pay approximately $1,200 in interest over the life of the new loan.

I had gap insurance before which I decline to get this time around. I didn't know that when I did this, I get a pro-rated amount back which they'll deposit automatically in my savings account for me.

So all in all I'll be saving approximately $2,100 over the life of this loan compared to the original loan! And the only thing I did was just refinance...

So this time next year I'll be back in there again when my credit is even better and I can get an even lower rate then as well.

I'm so ecstatic! Even my parents are happy! Although they weren't worried about co-signing it because they know that I pay my bills, but is was just one less thing that I wanted them off of. Hopefully this means that I'll never have to have them co-sign on anything else again!

YAY ME! =D

6 Responses to “Auto Refinancing...”

  1. creditcardfree Says:

    That is great news!! I say put that gap insurance refund towards the principal balance on the loan and pay it off just a little bit faster.

  2. Sian Says:

    I actually have maintenance fees coming up next month so it'll go towards that. ugh...

  3. FrugalTexan75 Says:

    Great job on the refinancing!

  4. PauletteGoddard Says:

    I'm happy your refinancing worked out for you! $2100 in savings from a vehicle loan is major!

  5. crazyliblady Says:

    Congrats. What do you plan to do with the extra money you would have spent on the loan every month?

  6. Sian Says:

    Thanks everyone!

    I'm redoing my finances as we speak so i'm not sure at this point. I may just let it go to savings since it wasn't a complete payment that I am no longer paying.

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