Refinancing

mabraham1977

Hoping to get some guidance on refinancing from any experts or experienced folks out there.

I financed a new 2012 F-150 in 07/2012. My credit wasn't that great, so the interest rate applied was 9.25 and the term was 72 months. I still have about half the loan remaining to pay off and was interested in refinancing to lower my remaining payments. My vehicle currently has approximately 53K miles on it. My loan is serviced by Ford Credit.

Some questions I have are...

1. Is refinancing through Ford Credit possible? If it is, is it advisable?
2. I just started a new job after being out of work for a few months. Should I wait a few months before attempting to refinance?
3. I believe my credit is only slightly better than it was when I first financed the vehicle (mid 600s credit score). Is it worth attempting to refinance?
4. Is there an out of pocket expense for refinancing? If so, what should I expect to pay out of pocket?
5. If not through Ford Credit, what is the best way for me to find banks that would give me the best interest rate on a refinance?
6. What information should I have on hand to discuss my loan with other banks?
7. When I bought my vehicle, I traded in another vehicle that had negative equity, which was factored into my loan. I also pay Gap Insurance as a result. Does that have any impact on refinancing?
8. Are there alternatives to refinancing I should consider?

I know that was a lot of questions. This is my first time dealing with a refinance. Thanks for taking the time to read and comment on this post.

Michaell

mabraham1977 said:

Hoping to get some guidance on refinancing from any experts or experienced folks out there.

I financed a new 2012 F-150 in 07/2012. My credit wasn't that great, so the interest rate applied was 9.25 and the term was 72 months. I still have about half the loan remaining to pay off and was interested in refinancing to lower my remaining payments. My vehicle currently has approximately 53K miles on it. My loan is serviced by Ford Credit.

Some questions I have are...

1. Is refinancing through Ford Credit possible? If it is, is it advisable?
2. I just started a new job after being out of work for a few months. Should I wait a few months before attempting to refinance?
3. I believe my credit is only slightly better than it was when I first financed the vehicle (mid 600s credit score). Is it worth attempting to refinance?
4. Is there an out of pocket expense for refinancing? If so, what should I expect to pay out of pocket?
5. If not through Ford Credit, what is the best way for me to find banks that would give me the best interest rate on a refinance?
6. What information should I have on hand to discuss my loan with other banks?
7. When I bought my vehicle, I traded in another vehicle that had negative equity, which was factored into my loan. I also pay Gap Insurance as a result. Does that have any impact on refinancing?
8. Are there alternatives to refinancing I should consider?

I know that was a lot of questions. This is my first time dealing with a refinance. Thanks for taking the time to read and comment on this post.

I'll try to answer your questions as best as possible ...

1. Sure, never hurts to start with your current lender
2. A few months of solid income history should make it easier to refinance
3. Won't know unless you try. Money is pretty easy to come by.
4. Not sure of this one
5. If you have a local bank or credit union, you might want to contact them. Otherwise, try lending tree.
6. Call Ford and get the current payoff (this amount should be good for 10 days or so). Also, know the current interest rate, make, model and miles on your truck
7. The negative equity increased the size of your current loan, which you'll now have to refinance. Might make it a bit more difficult.
8. If you can afford to, pay extra each month on your current loan - and make sure it's marked as paying extra on the principal, not just paying ahead.