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Posted in Auto Loans
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rz1989

1 Contribution
1 Person Helped
Refinancing... does this make sense?
Refinancing from Americredit to First Investors.

Terms with Americredit were a 21.99 rate, with a $15,038 payoff. I was paying $457/ month with 49 months left.

I got offered a better rate at First Investors, 14.33%. The payoff + 499 gap + 5500 in interest puts me at $21,077, and a 405 payment at 51 months.

Does it make sense to refinance if I'm adding another 5k to my loan??? My payment isn't even going down that much despite the significant drop in rate and extended term.

I'm new to this, does anybody have any input?

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Top Contributor
5038 Contributions
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Your math isn't even adding up here, grab a calculator and run your numbers (loan payment amount x the number of payments)

Utilize "loan calculators" and "amortization calculators" they are on this site to the left and bankrate has good tools too.

Understand that paying your loan off right now will save you money in interest, so your payoff today will be cheaper than if you pay it off over the life of the loan agreement.

Unless there is some type of funny business going on, a lower apr will save you money as long as you don't extend the length of the loan by too much.

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