Car Refinance

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This topic contains 10 replies, has 5 voices, and was last updated by  kirkan1981 3 months ago.

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  • #40510

    kirkan1981
    Member

    I’ve asked this question..searched the forums, emailed @timtrumble and even asked my MC to no avail.

    My MC said to possibly be approved for more house I need to refinance my car loan. I’ve had the car for almost a year and I found someone to refinance me which will save me about $50 a month. My question is if I refinance at this point if the process will that hurt my qualification and is saving the $50 worth it?

    Anyone please???

    #40512

    Hello Kirkan,

    I found a post similar to this one on 01/10/2018 that may be helpful to you.

    Question: My question is, will refinancing push us back on being able to qualify for a home?
    Answer:Unfortunately, as much as I wish it weren’t so, this is a case of “you can’t have it both ways”.

    Refinancing the car is in fact the creation of a new loan that pays off and replaces the old one. Therefore, you will have created a new line of credit, which will require a 12-month on-time payment history before you can be NACA Qualified.

    I would love to see you get out of that high interest rate auto loan and save the hundred bucks a month. However, if you do, it will indeed cause you a setback in becoming a homeowner.

    I’m afraid you’ve got kind of a tough decision to make that is going to be a matter of choosing priorities.

    #40513

    kirkan1981
    Member

    Thank you. I saw that post as well as others. They all seem to say something else as to why I went to MC and @ttrumble for guidance. My next question is if it will mess me up then why did my MC suggest it? Please see below:

    I have not been qualified yet through NACA. I’ve had my intake appointment. Just waiting on promotion letter to show increase in salary. If I wanted to refinance my car loan for a lower interest rate via the same bank, would that jeopardize my potential to getting qualified?

    November 13, 2013 at 9:15 am#9239

    TTrumble
    Member
    Hello jeremy1802,

    At this point in the process, refinancing your car should not cause any problems. If it results in a lower car payment, it will help get your a higher approval amount. Just be ready to write a Letter of Explanation stating why you got the refi on the car.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    #40519

    BleuBlue
    Member

    Yeah that is a tricky one, I would be so heated if I refi my car loan and come to find out I had to wait another 12 months…..

    #40520

    kirkan1981
    Member

    @bleublue that’s exactly how I feel at this very moment and no one with some kind of authority or first hand experience can answer the question. I’m going to try my MC today again and if I don’t get her then I will try the office manager.

    Thanks

    #40524

    BleuBlue
    Member

    @kirkan1981 yeah or I would ask an underwriter and see what they say.

    I would hope not because its the same loan and its just lower payments, but then again it could be considered as a new loan since there is a new interest rate and time frame and all that good stuff.

    #40547

    @kirkan1981 did you get any clarification from your MC or the office manager? I’m not sure why Tim hasn’t responded to this post, but he was singing the same tune on the personal loan post.

    It sounds like you didn’t refinance your car yet so I’m super happy you reached out for clairfication first.

    #40548

    kirkan1981
    Member

    @Searchingforhomes Nope no clarification at all. I even reached out to Tim via his email. Still nothing. I called the NACA corporate she said she will email the office manager. My MC was out of the office yesterday. So it’s like I’m left out to dry. I haven’t refinanced yet. I have been waiting on an answer. SMH I haven’t even really gotten started and I’m already getting the silent treatment. it’s making me a little discouraged.

    #40552

    @kirkan1981, don’t get discouraged! Keep advocating on your own behalf and keep following up with calls or emails till you get the info you need. Naca is notoriously understaffed, but they’re a non-profit and pass on the savings to members. It’ll be misery-inducing sometimes, but it will be well worth it in the end!

    #40563

    kcotting
    Member

    We recently qualified in ATX. I refinanced a student loan with the advice of my MC. I got a better interest rate and it lowered my monthly payment. My MC said it was okay as long as it wasn’t new debt.

    I had to show that my previous loan had been completely paid off. I also had to provide the new loan documents with the updated monthly payment. Lastly, I had to write an LOE to explain why I applied for this loan.

    There was no question from the underwriter and we were approved for the amount we needed.

    #40584

    kirkan1981
    Member

    I spoke with my MC and she said because it will only save me $40 and start the life of my loan over then it was not worth it. I’m so glad she finally got back to me. Thank you all for responding. I am just starting out and I feel so frustrated all ready! Trying to stay positive!!

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