- Centurion Member
- Posts: 467
- Joined: Sat Apr 13, 2013 7:49 pm
- Location: Colorado, USA
Sorry, but gotta disagree with the guys above. A lot depends on whether you are financing with the same lender or going with a different lender. You might be in a rush to get a loan approved, go thru a dealership, get a loan but the interest rate may be higher than you want. If you shop around (after the fact) and find a better loan with better rate, then it could make sense to refi.
Also, if with the same lender, there are times when a lender will give special rates, or you as the customer may have had a change in credit score that would move you to a better rate. I've done that several times, gotten a better rate and lowered my monthly payments. The TRICK is to keep the same terms, ie, if you're on month 26 of 48 month loan, only refil for 26 months, so your payoff date remains the same but your payments for the same product are lower.
I also did this with an RV, knocked 2.5 points off the interest rate, kept the terms the same, lowered my monthly payment by over $60.
HOWEVER....if you go with terms different than the current loan, back to another 48 or more months loan, then I agree with the other guys, doesn't make sense to do that.
Retired, and in the process of retiring cards!
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