I've been toying with the idea of refinancing my current car loan - it's at 6.25% with my local CU, and I could get 4.75% through PenFed. The question is - should I wait till Feb. to see if the rates drop a bit or should I just do the refinance now?

I know this is a guessing game, but I was wondering what you guys thought if you've been searching for loans and have thought about the possibility of rates going down some more?

TIA.

 

at7815 We refinanced with the same company we started with. I really didn't care about getting a lower interest rate, just stretching out the agony and having less go out each month. Mission accomplished, and with a lower rate! I know the term is longer, but if things straighten up we can pay more each month. We just had to think about cash flow now!

 

Generally speaking rates for refinance are not as low as initial rates, your financial institution may vary. This is just my humble opinion too, but people get too hung up on auto loan interest rates here. 1 or 2 percent can make a huge difference on a 30 year mortgage, not so much on a short term auto loan. Make sure there's no hidden fees that could gobble up any of the cheaper monthly payment either.

 

Thanks for the replies. I figured it won't cost me anything, and there is no pre-payment penalty, so why not save just over $1,000 over the life of the loan? Every little bit counts in my book. I think I'll probably go through with it. Thanks again.