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cten07

Refinancing ?'s

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Car is 2018 Toyota Corolla LE 18,600 miles, Loan Balance 21.5K, int rate 13.4, payment is 484/mo. Had negative roll at purchase of 4,500 which is why I currently owe 21.5K on it. 

 

Credit score notwithstanding, at what point based on LTV would I be able to refinance, if ever, without making extra principal payments. 

 

I am aware of 120% LTV possibility, but 120% of retail or trade value for refinance purposes? 

 

Thanks. 

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2 hours ago, cten07 said:

am aware of 120% LTV possibility, but 120% of retail or trade value for refinance purposes? 

Depends on the lender.  CU will use NADA retail and calculate their maximum advance from that.  Banks generally use NADA clean wholesale to calculate their maximum advance.  Both ways come out pretty much to the same number based on their guideline positions.

 

My answer would be 100% so either way you should be covered.  And that is just a SWAG.

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If it were me, I would be looking to refi that puppy ASAP to get away from that insane APR.  And then once the loan is re-written with more reasonable rates, immediately begin tossing far more than the $500 per month at it to get rid of it inside of three years. 

 

Even if you got stuck with it at 5%, tossing about $650 a month at it clears the note inside of three years.  To do the same at the current rate will mean putting roughly $725 per month towards the note.  I didn't run the specific numbers, so figure +/- $25 each way.  

 

Regardless of ability to re-fi, the sooner you get a lot of extra principal payments thrown at it, the sooner you cease to be upside down.  And hopefully you have also taken heed of the wisdom of never again rolling negative equity into a note...you ONLY help the lender when you do that. 

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One way to lower your payment - since the balance is what it is - is to do an RBF loan through a lender like fiwize.com.  Not sure how deep on the credit spectrum they'll go but it can drastically reduce your monthly nut, especially for cars that hold on to their value.

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12 hours ago, carqwik said:

One way to lower your payment - since the balance is what it is - is to do an RBF loan through a lender like fiwize.com.  Not sure how deep on the credit spectrum they'll go but it can drastically reduce your monthly nut, especially for cars that hold on to their value.

Just looked at the site.  Looks like there are several additional ways to get screwed financially compared to just overpaying for a car you can't afford and then compounding the problem with a stupid interest rate. 

 

BUT LOWER PAYMENTS!!!!!!!!!  :wave: 

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15 hours ago, carqwik said:

One way to lower your payment - since the balance is what it is - is to do an RBF loan through a lender like fiwize.com.  Not sure how deep on the credit spectrum they'll go but it can drastically reduce your monthly nut, especially for cars that hold on to their value.

shill much?

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