Need to refinance ASAP

[LadyElan]

I posted this in the credit forum but I probably should've posted here. I traded my car in right before I went out of town for the holidays. My payments went up but I could afford it. My house burned down while I was out of town. I ran up my credit cards living off of them and the rent at my new place is higher than before. So my car payment, rent, and credit card bills went up. I can't afford to make the minimums on my credit cards so I'm hoping that I can refinance my car and get a lower payment. My interest rate is 25.25%.

 

I have a 2007 Suzuki XLZ with 24,600 miles and my payoff is 15,678. I tried all of my credit unions and banks as well as Cap One, Roadloans, and Lending Tree.

 

My latest FICO score is 584 from TU with 2 collections and about 30 maxed out tradelines. I also have a ton of inquiries from trying to get the car financed when I bought it.

[MarvBear]

probably the hindrance is the LTV you need to successfully complete the refinance. I'd bet it's outside any lenders advance parameters.

[jackgehr]

LadyElan,

 

IMHO it's never a good idea to refinance an auto loan.

[hegemony]

IMHO it's never a good idea to refinance an auto loan.

even if it means a much lower APR????? what is wrong with paying less interest?

[toopooor]

IMHO it's never a good idea to refinance an auto loan.

even if it means a much lower APR????? what is wrong with paying less interest?

 

I woulda ran from the 25% rate to begin with - worked on raising my score so i could get a decent rate.

[jackgehr]

IMHO it's never a good idea to refinance an auto loan.

even if it means a much lower APR????? what is wrong with paying less interest?

 

Don't forget that you're really going through the "Purchase Process" again, taxes, dealer costs, it's not as simple as it sounds. Plus, you end up with a new contract for, X # of years which will probably be 60 months, because you want to make the lowest payment possible. That's the reason your refinancing, right? Plus with the credit history you cited it's highly unlikely you can get a lower rate.

[hegemony]

IMHO it's never a good idea to refinance an auto loan.

even if it means a much lower APR????? what is wrong with paying less interest?

 

Don't forget that you're really going through the "Purchase Process" again, taxes, dealer costs, it's not as simple as it sounds. Plus, you end up with a new contract for, X # of years which will probably be 60 months, because you want to make the lowest payment possible. That's the reason your refinancing, right? Plus with the credit history you cited it's highly unlikely you can get a lower rate.

 

taxes? dealer costs? please show where a refi includes these items. thanks.

 

also, the term could just as easily end up being shorter.

[mk_378]

There are no taxes or fees with a refinance. In almost every case, you get a new loan for exactly enough to pay off the old one.

 

I don't think that would help the OP much even if it were possible. She appears to now have an unsustainable amount of debt. Unless income is going to increase soon, bankruptcy could be the best option.