I've been thinking about refinancing my car. . .my thoughts? My current APR is around 6%, so new APR wouldn't be much better, I just want to lower my monthlies. . .I have about $13.5k left, for about 2 years. On one hand, I want to just finish paying it off, but on the other wouldn't mind paying smaller monthlies.

Your thoughts appreciated.

al

 

Ask where ever you are going to refinance which loan is going to pay off faster, the new one, or this one you have now, I would make the big monthly payments if it paid off faster, in the end you will be happy you stuck it out.

 

Since the current APR is not that much better than what you were paying, ask yourself, will the savings from the new "lower" interest offset the savings that you will obtain from paying at your current loan off in 2 more years? Unless you can make more money from the savings of your lower monthly payments via investments, I think you're better off paying off your loans quicker at your existing APR.

 

it doesnt seem to make sense to refinance right now. what are you payments right now?

at $13,500 4.5% apr (if you can get that) for 2 years is $589.25/month.

if there isnt too much of a difference, just keep the current loan. better yet, pay more every month if you can afford it. that way you can knock off a few months of payments and be done with it sooner.

 

Yeah, doesnt make much sense at all. I was thinking about pushing it out an extra year. But yeah, thanks for the advice guys. I'd better just pay it off first, hopefully I'll be out of school by next summer. So a better job = faster payoff.


al

 

That may be difficult. Most likely the payoff exceeds the loan value. Similar to being “upside down” on a trade-in.