How To Refinance A Car Loan With A Credit Union? And avoid common costly mistakes!

[@nunosapunso6239]

I purchase a new vehicle with bad credit at 15.65% for 72 months. Worked to get my credit in excellent shape. I refinanced my loan with a local credit union after 10 months. I cut my loan down to 48 months at 6.25% and saved almost $10k in interest and stayed at the same payment amount because I don’t have a problem with the payment amount. I wanted to reduce the % and pay it off sooner.

[@SG-uq6yc]

That's great! And exactly what I want to do. Quick question: Did you do things like add extra money toward the principle, split payments, or make double car payments while you were working on your credit? I know I'll benefit more from refinancing a horrible rate, but IDK if paying down my car note will help the refinance process.

[@priscillasoto9293]

I got my car at 19 with no credit and had a interest rate of 21% I just refinanced through a credit union at 21 with a higher credit score and was able to get it down to a 6% and plus a shorter term . Almost done paying it off !

[@DiamondEdwards]

Stay focused make a plan for your next steps beyond the car. Congratulations!

[@salimahexperience8460]

Which credit union if you don’t mind sharing.:)

[@donnellhicks]

Congratulations on get a lower interest rate.

[@Coleword78]

If you don’t mind me asking what was your credit score when your refinanced

[@gwillis01]

The idea is that credit unions are based on a lower profit model so their loan rate is lower. The whole reason credit unions started as a concept is that someone wanted to set up a lower profit model so that people with lower than average monthly cash flow could get better access to loans to buy things like cars and homes.

[@DiamondEdwards]

Thanks for adding some context to the video. We learn better from each other!

[@gwillis01]

The credit bureaus have what they call a "rate shopping window" that is about 14 days long. As long as all the auto loan credit inquiries are within the rate shopping window, it only counts as one auto lending credit check.

[@DiamondEdwards]

I covered that at 9:15 Depending on which fico model its up to 30 days. What I recommend is people pick 2-3 places they want to do business with and apply to all of them within a day or two. Which means they should wait until they are ready to refinance. Thanks for adding value to the video.

[@AnteaterRae]

That was a GEM at about 6 min. This is my 4th video on this subject. I wanted a more in depth video; so far you're delivering!! Thanks!

[@DiamondEdwards]

Had to go rewatch that Gem! I'm glad it helped! Sharing is caring!!! Thanks for watching.

[@lisarobinson3521]

Lord, this is one of the Best videos about refinancing!! You should have more views and likes!!! Thank you soooo much!

[@DiamondEdwards]

@Lisa I'm glad you enjoyed it! I'll keep putting out good content and I'm sure the views and likes will come. What's important to me is these videos reaching the right people, at the right time, to help them make the best financial decisions. Our future is depending on today's decisions!😀

[@lisarobinson3521]

@@DiamondEdwards You are correct!!

[@Dapowerranger]

Just refinance my new car..I traded in my old that I was upside down in. I was about 5k upside down..so I put as much I could which was 3500. The initial auto loan had a 8% interest loan. After refinancing with arrowhead credit union i now have 5.7% interest rate. Your videos helped me alot !!

[@mikkey246]

Do I go to any bank and ask about refinancing or does it have to be my own?

[@Dapowerranger]

@@mikkey246 any bank bcuz they will take over the loan if u get approved I would try credit unions like Arrowhead credit union first tho!

[@mikkey246]

@@Dapowerranger thank you! I'll check out my credit union and see what happens 😁

[@DiamondEdwards]

What happened? Were you able to get it refinanced?

[@cardi868]

Bruh this was 4 years ago wow I'm paying 21% interest

[@kirkdunn1379]

Very very well said brother!!! Find a lender who uses your highest score and model I did exactly this...I had a 670ish fico 8 score but my fico 9 equifax was 739....I researched and learned pen fed uses that scoring model.....I dropped a year off my loan and received a 4% interest rate from 7.89% @ Navy which i used the same technique to get that loan in first place....in 5 months my fico 9 jumped from 665 to 739........if I didn't know this trick I would be sitting at 12-13% that the dealer offered... I went from 17% APR with no score in 8/19 and 10 months later at 4% APR...

[@DiamondEdwards]

That is great that a little leg work saved you thousands of dollars. Now it's time to focus on getting this loan paid off. Just think how much you will save in interest if this is your last car loan in your life. I did the math after I paid off my last car and that is how I decided I will be paying cash going forward.

[@kirkdunn1379]

@@DiamondEdwards for people who don't have high fico scores (and most have wide ranging scores) this is a huge advantage and resource in their favor if they can utilize it......I will save about 7k over life of loan.....

[@edwinmedina4338]

Great video, my interest is 7.49 still owe 21k on my 2019 subaru outback, currently looking into rbfcu and see what they offer me since I bank with them! Lower my rate put more money towards the balance.

[@DiamondEdwards]

Sounds like a plan

[@CSJiGSaW08]

They showed me the print out of 809, 857 and 860 and got 5.49 interest rate on loan. I think they upped the interest rate but I did not protest because it’s a vehicle order I had waited for 1 year. This was last week at a large GMC dealer. Can I go back to manager and ask them to lower it?

[@robertbidot3238]

I went to a Ford dealership. They ran my score through 15 different lenders. At 5 points each, that was 75 points pulled in one day. After it was all said and done. I walked out of there with a truck and a score of 625 with an intrest of 13.9 apr. I did have a score at that time of 665. So it doesn't always work out that way. In the future I'll do better shopping when it comes to a vehicle.

[@DiamondEdwards]

Were you tracking your FICO score? If so, that would be strange because they only recalculate your score once a month. How long did it take your score to rebound? Always shop your rate BEFORE going to the dealership or take my approach, I'm paying cash for the next car I buy.

[@robertbidot3238]

@@DiamondEdwards, 15 pulls in a 20 minute span. I kept getting notifications every time it was pulled.

[@vthompk1240]

great you explained everything in detail great job.... you were in specific details in I love how you show the website as a example.... why? and how? and what to look for in the process of refinance man you are one of the best when it comes to these videos about auto loan refinance

[@Amanda-Lee33]

Love your video so real and to points answered questions that most people really want to know, no flash no frills no pushing ads or repeat begging for likes an subscribes no bs Appreciate ya

[@Jheadlee76]

Super useful! Clearly explained. I just subscribed. Thanks!

[@brucewilson1269]

Excellent! great ideas, Credible presenter. I've saved this and will use it as a reference. Thank you

[@GoDzFIGHTER24]

Well explained and very helpful! I have a auto loan I’m about 5 payments in at a 7.9% interest rate but looking to cut that % in Half possibly. I had a question though would agreeing to an original 72 month the way to go or is there places that will keep the exact payoff time the same?

[@DiamondEdwards]

5 months in so it's not going to make a huge difference. I would reduce the term to as short as I could afford. Go for a 60 or 48 if its in the budget and use the principal method as interest rate is not the solution.

[@habibah2702]

Great question 🤔

[@QueenSorrow5150]

Thanks so much. I see i need to your other videos to try make a good choice. I want another car, but I want to be out of debt more. Due to the virus I've learned to save money. So I'm trying to be more financially healthy. This is the best subscription I ever choice ❤

[@DiamondEdwards]

Thank you for the kind words and checking out my videos. I'm here to use my experiences to help other avoid the mistakes I made along my journey (which is not over by any means). If you delay getting another car and focus on getting out of debt your will soon have plenty of money to buy another car.

[@joiagenae]

Should I refinance? I have a 9.84 interest rate with about 18000 left on a 2019 corolla. Credit score is high. I have about 64 months left to pay on it but I am trying to pay it off much sooner than that.

[@DiamondEdwards]

It wouldn't hurt if you could get a lower rate but coming up with that 18k will do more for you than a lower rate. I had about 30k @5% with 70 months left and got focused and paid it off in two years using the principal method I talk about in other videos. I never looked back!

[@keianasimpson7162]

Was your interest rate high because of little to no credit history? My mistake is that I went to the dealership to finance my car…

[@crystalbenitez8583]

Hope you can answer this! I financed my car for 60 months at a 14% interest, I currently owe 22k. I started my credit with this car. Only 6 months ago. Should I refinance now or wait another 6 months?

[@DiamondEdwards]

Try now but if you don't get a better rate then try again in 6 months and keep your term the same. PS never sign up for another high interest rate loan even if your are trying to build your credit. It is a myth that you are to pay high interest in order to build your credit.

[@hilliardlarkins9278]

Great information!! really helpful gonna use it

[@hilliardlarkins9278]

You should come with me on my next car deal

[@DiamondEdwards]

Thanks, I hope it helps you save some money. I hate buying cars from dealership so I keep them a lonnnnnng time. When it's is time to buy I'm doing 99% of the deal online and through email.

[@terrycloud6437]

Hey, awesome video man! Thanks

[@hunchosmooth2315]

Is it smart to refinance if you are planning to trade the vehicle in?

[@kimbokimbo1857]

I am scared to refinance! My goal is just to get a lower interest rate and pay that baby off. I got a 13K last October with 6.4%, now at 11K goal for 2.74%. THANK YOU I will be calling my credit union in the AM!!

[@kimbokimbo1857]

Will refinance impact my credit score ?!

[@DiamondEdwards]

Yes it will impact your credit score but don't be scared. The goal should be a high net worth not credit score, right! Get that thing paid off. Save your car payment and buy the next one in cash. It's the cheapest option.

[@DiamondEdwards]

Congrats on the interest rate drop! More money to throw at the principal!!!

[@Xtremeproducts]

You can also ask for a pay-off amount that last for 14 days

[@DiamondEdwards]

Yes

[@dw2446]

Excellent video sir! God Bless you and yours.

[@DiamondEdwards]

Thank you kindly

[@brandonhalcomb419]

Great video! A lot of good information on here.

[@JWW77]

Thanks for the info!

[@aubreyevans7105]

OMG your video is so helpful, thank you for the insight! :)

[@ooPIRATooo]

love the video, man you did grate job with an explanation

[@DiamondEdwards]

Appreciate it!👍

[@brysonsteelers]

Thanks man! Great video

[@DiamondEdwards]

Glad you liked it!

[@crystalaceves7489]

Thank you for the great advice!

[@fzzoom4389]

you just answered so many of my questions! Thank you!!!

[@DiamondEdwards]

Glad I could help!

[@alazkaridayanara]

Great video!! Helped me clear some confusion

[@DiamondEdwards]

Awesome, glad it helped!

[@jumbojet3398]

Helped out a lot appreciate it ✊🏾

[@DiamondEdwards]

That is the ultimate goal. Thank you for your feedback!

[@veep4154]

@@DiamondEdwards bro how do I refinance my car and change owner ship and take it off my name

[@tribalism_is_toxic1989]

Yes, thanks alot. ✊

[@xCR4ZYxCLOWNx13]

I love u for this!!!! Thank u so much

[@darinka4482]

Thank you for going in depth about refinancing . Just applied for refinancing so hopefully all goes well 😅

[@laviniayale6255]

Thanks for the gems!

[@mehmet-eu3df]

hi thanks much for video🙏 but i couldnt find anywhere whats the dmv process of refinancing , do i need to pay registiration fee again ? or do i need get new insurance plan , how it works , thanks in advance

[@Quese_W]

Exactly what I needed bro. Thanks for getting to the point🙌🏾

[@DiamondEdwards]

Any time!

[@jamesc.4262]

Another good video! I’m really happy I came across your videos. My question is how SOON can I refinance after my initial car loan? I got a horrible interest rate and I’m applying the extra payments to my principal just like you said. I just want to be aware of all my options for the best outcome. Thanks bro, keep supplying us with the game

[@DiamondEdwards]

Good question James! There is no time minimum required. You can refinance the same week. The question becomes are you going to get a better interest rate. If your credit score is decent and you did not shop your rate then may be able to find a better rate today. If your score is not good then you should wait 6-12 months while making on time payments and then try and refinance or sale it now. I would also seek out a lender who uses a FICO Auto Score or auto enhanced score because chances are this score will be higher. Lastly, don't get too down on yourself about the interest rate because what's more important is you attack the principal balance as fast and hard as possible to get this thing paid off. This will save your more money over the long haul than a refinance. Thanks for supporting the channel James!

[@jamesc.4262]

Diamond Edwards Will do bro, thanks for the info💯

[@richardjohnson4065]

I have a similar question Diamond Edwards I was going to make the the payments on time 6 to 12 months on my New SUV and try to refinance on my own Solo my parents helped me with getting this ride for a stronger income so I needed a Co signer but I'm making all the payments kind of got shook up a little do to covid 19 and it set my income back a little that's why I needed my parent help but can this happen for me after 6 to 12 months payments on time and putting money to principle

[@isaiahfelder445]

Does refinancing cost anything

[@glamorousvanity1137]

So random but where did you get those paintings at on your wall?

[@DiamondEdwards]

We can do random. I believe they were purchased at Ross.

[@damieon333]

My question is when you refinance with a new lender and new low interest rate is it still good to continue with old payments and use some of it towards the principal will then help paying off your car a lot early

[@DiamondEdwards]

Refinancing pays off your old loan leaving you with a new loan. Yes I would use the principal payment method to pay off the new loan faster. Use everything you have towards getting out of debt.

[@damieon333]

@@DiamondEdwards thank you so much I do appreciate it

[@718_sports4]

Yo bro this video is GOLD 💪💪💪💪💪💪

[@jadencresser]

Great vid, nice parent advice

[@DiamondEdwards]

I try

[@claudiaa5256]

Good stuff !.... thanks D

[@sabrinalynch4325]

We recently got a brand new car 2021. We are hoping to refinance for a better rate in about 18 months. My question is about the miles and how refinancing works. My husband constantly is on me about putting miles on because we won’t be able to refinance it. How much does mileage on a car affect the banks decision? Like i said the car is new and only has about 200 miles when we got it.

[@kirkdunn1379]

New cars are up to 7500 miles....I just refinanced my new truck and it had 7k miles but my loan is still considered new vehicle......check with your lenders.....I refinanced mine after 4 months.... Pen fed, DCU, and Navy are good CU for autos Find your auto fico scores and match your best with the lender that uses them.....shouldn't have to wait 18 mo....

[@DiamondEdwards]

I'll just added that mileage will affect weather you get the new or used refinance rate. Other than that the CU don't care as they will lend up to the value of the car and unless your racking up 30k miles a year you should be fine. What you have to watch out for is negative equity (owe more than it's value). That stops a lot of people from refinancing. Last thing is the rate is not the problem nor solution. My suggestion is focus on the balance and get it paid down as fast as possible. Car payments suck!😁

[@jarrettjackson4024]

Great video

[@DiamondEdwards]

Thanks!

[@tjdavisel3003]

Informative video!

[@DiamondEdwards]

✊

[@mr.m.7357]

When you refinance are you also refinancing the interest on the original loan? So are you then paying the cost of the car along with the interest just in a new loan with lower interest?

[@DiamondEdwards]

Only if your loan has precomputed interest or a pre-payment penalty. Both are rare but check you loan documents. Otherwise when you refi your loan balance as of that day is paid in full and your new loan is for the exact same amount. Interest due is calculated based off your balance each month.

[@tanasiadavis941]

Hi great video! I’m a new subscriber Question I just trade in my car and got another car with apr rate of 8% . How soon can I refinance?

[@DiamondEdwards]

Unless your contract states something different there is normally no time restriction to refinance. However, unless your score has with up a lot or you didn't shop your rate the first time refinance soon after a purchase won't get you a better rate. What's the rush to refi? Thanks for subbing.

[@funnygirlever]

I'm new to your page. Thanks again.

[@DiamondEdwards]

Welcome!

[@destinycastanesa9586]

I have a 2015 Jeep Wrangler . I have 19731 $ left but my I apr rate is 22% I have no idea what credit union in Houston to go to . I’m so lost

[@gwillis01]

Thank you for a very informative video

[@vibezzz8894]

Hello Diamond,would you recommend Addition Financial or Ally to refinance a vehicle?

[@hgov7601]

Your the man! Thank you for the info!

[@jakebishop9962]

Hey man, AWESOME video. This video should have millions of views lol. I have a question. My old car was totaled at the other parties fault, but their insurance decided to fight. Was supposed to go to court recently but it was canceled due to covid. I've been paying for a car I do not have for the past year because I was stupid and only had liability on a car with a auto loan. My question is, do I have any options? I called my lender but they have HORRIBLE customer service and they ended up telling me "tough luck" which I assumed was pretty much my situation. Am I SOL or do I have any options you're aware of? thanks in advance!

[@DiamondEdwards]

I agree! Where that share button, lol:) I feel your pain and you are doing the right thing. Your lender does care what happens to the car after the fact they just want their money because they already paid the money to the dealer when you brought. You will have to eat it and pay this car off. That is what I would and chalk this up to stupid tax aka a very expense lesson. And remember the definition of insanity...don't let this or anything close to it happen again. Sorry bud.

[@ms.j8623]

Thank you so much Mr. Diamond for your library of knowledge. You are truly a "Gem." God bless you.

[@DiamondEdwards]

You are very welcome🙌

[@izzyc.4746]

Love your video❤️

[@Onelove0723]

I just ran across your video in it helped me a lot but I do have a question. How long after purchasing a car would you wait to refinance with the credit union?

[@DiamondEdwards]

There is no written rule but in order to get better terms there should be an improved in your credit score. 6 months is generally stated as a good time to refin. Make sure your loan to value ratio stays in check otherwise you may not be able to refin the full amount owed. Thanks for watching!

[@MaaarrzLand]

I was a first time car buyer and my interest is at 14.81%😩😩 I really want to refinance to get down lower but I’m note sure if I should. I’m afraid it’ll mess me up in the long rn

[@DiamondEdwards]

High interest rate means your paying down your principal balance slower and you are more likely to have negative equity. Pay extra towards the principal to keep your loan balance in line with the value and you should be able to refinance once your credit improves. Thanks for sharing your story. This can help others find another way.

[@caribbeanbeauty3772]

@@DiamondEdwards it helped me ! Thanks

[@missaddavis]

This was 100% beneficial

[@DiamondEdwards]

Thank you Posh82!

[@xoliswamthembu997]

👌🏾👌🏾👌🏾👌🏾👌🏾 thank you

[@Reflex702]

Hey! So I'm still able to pay off my monthly payments w/o any issues and was wondering if I should look into refinancing my car with a current 8% apr?

[@DiamondEdwards]

You will save more money buy using the principal method I talk about in other videos and pay it off as fast as possible.

[@KingDrewPhilip]

I only owe 5,200 on my car loan and the car itself is worth 17,000. So I have way more equity. I might want to refinance because my interest rate is 8% and I pay 280 a month. I want to refinance only to lower my monthly payment to like 120. Is that possible? I will also continue to pay more than the new minimum monthly payment so I am always ahead. The intention is still to pay off the car quickly, within 18 months.

[@peacelove9583]

This is my second video of yours that I watched and I really like your content. I’m getting a new car with a credit score of 800 . At the dealership I realize I am paying more than what the car is worth for a interest rate of 7% even with 5K down . I figured it was because I wanted to be able to afford the monthly payment for 84 months . Is this something the credit union can help with a lower interest rate ?

[@peacelove9583]

Another thing I wanted to mention that this is a preowned car . A 2021 with a mileage of 12K

[@Noodlepunk]

Look up his video on monthly payments and principles. It will help out alot.

[@aimbotstrafe_5881]

How do I keep tabs with my old lender? Do I just keep calling them to see if they got the check from my new lender?

[@DiamondEdwards]

Exactly or check your balance online! You can stop once you have your paid in full letter in your hands. Keep that letter on file too!

[@leilamartinez9533]

What should i do? I recently got a used 2015 hyundai tucson with 21.89% interest rate and owe $23,000? My first payment is on October 22nd? Should i refinance or wait?

[@DiamondEdwards]

You will only get a better rate if you score has improved. I with we met before you signed up for this loan. The best thing to now is pay extra to keep the loan to value of the in line then refi ASAP. Cancel everything but Gap. $23k for 2015 Tucson is highway robbery.

[@leilamartinez9533]

@@DiamondEdwards I do wish i saw your videos before. My credit score right now is 660, do i wait until i get a higher score to refinance or should i just pay more than my monthly payments to finish my loan quicker?

[@ZXDRUMN]

Salute!

[@mullcrumthesage6303]

Yo D! Is it safe to give out all your info online or over phone? Or should you meet someone face to face?

[@AliahAerial]

Hi, I have a car that is 29,881 with a 5.23% rate that equates to $34K over 72 months. Do you think it’s worth refinancing to get a lower rate or should I just double the principal payments?

[@DiamondEdwards]

You can but its only part of the solution. I had a 4.99 rate on $40k at 84 months and did not refinance. I put my energy on paying off the $40k ASAP and was able to get it done in 34 months which I talk about in this video kzbin.info/www/bejne/hKC7eaWZmb98qqs. The amount of interest I would have saved by getting a lower rate was pennies compared to what I saved by paying it off early. That is where I would focus your energy.

[@Phillians413]

After refinancing and previous lender is paid off by new lender, should the balance say “closed and the balance is listed “, or should it say “closed with zero balance “?

[@DiamondEdwards]

Don't go off what it says on your credit report as there is no law as to the verbiage used. As long is it says something like closed or paid and the balance show $0 you should be good. The MOST IMPORTANT thing is that you receive a pay off letter confirming that the loan is paid in full! Keep this letter on file as this is the proof that matters. It can used to correct any error that may pop up in the future.

[@heididejesus4911]

I hope you can answer this question, my loan is for 6 years I’ve had the car for 1 year and a half but I have saved enough to pay it off and my score is way better can I refinance now to see if my interest rate will go down and to pay it off completely

[@DiamondEdwards]

Always do what's right for you net worth and long term financial goals. Pay it off today and start paying your that money every month. Paying interest on a car loan to help your credit score is a bad finance move and refinancing only reduces the penalty you pay! Interest paid is the penalty. Good luck!

[@edwinmedina4338]

If you have the ability to pay off your car loan save on interest and continue to pay yourself that monthly expenses and put aside for maintenance down the road. I payed off my car a year before and saved a lot on 23% interest on that 5k I owed! Just make sure you have some liquid cash 1 to 2k saved up before you do in case you need a cushion if anything comes up. Good luck

[@djsjsj2593]

Hey man I’m 19 going to be 20 in a month, I have no credit I’m stuck on a 72 term car loan with a 18% interest rate. When should I refinance? I just got this car a month ago I’m trying to shrink the term to 48 months and cut that Interest rate as well. What’s your advice?

[@djsjsj2593]

21k Loan (used)

[@DiamondEdwards]

Hey 4k Rambo, first things first, I want you to change you verbiage. YOU ARE NOT STUCK! You just signed up for a BAD deal. Learn from it, fix it and never do this again and you will be just fine. I've done my share of "bad deals" too so you are not alone! What type of car? You could try to refin in 6 months but mostly likely with a thin credit profile it will be 12-18 before you find someone to approve you with a better rate. The problem you're going to running into is paying 18% interest you are paying down your loan at much slower rate so when you go to refin you will owe more on the car than it is worth. Banks will not approve you for the full amount regardless of what your credit looks like so the difference would have to be paid out of pocket. If I were in your shoes, I would stop thinking about credit and interest rate and focus on the real problem. You owe $21,000 and if you want to keep the car then you need to come up with $21k EVEN if you refin at a better rate. So, I would put my efforts on ways to come up with this money as fast as possible. Check out my latest video and playlist on buying cars it has some great info that will help you out. kzbin.info/aero/PLdKOWk-Vo99x2A-yIp4I17utR-MwLAykF Make principal payments to help pay down the loan faster kzbin.info/www/bejne/gH2kg3p_fNGCj68 Let me know if this was helpful.

[@florsanchez7913]

I was only able to get approved to take out a car with a co-signer 2 years ago with a 14.6% apr 6yr span. We’ve payed my car on time for the past two years but my credit has not gone up. Now I want to lower my apr and I talked to one bank but once they ran my credit and put everything down I was approved to take the co-signer off but my apr only changed to 14.3% something among that percent! What do u recommend me to do?? 😭

[@feliciarambert8431]

I have a car that’s up for repossession. The bank that I financed it through gave me two options. Refinance or sale. Is it a good idea to even try refinancing as my current loan isn’t in good standing? How can I prevent having that “repo” added to my credit. Hardships happen I need advice.

[@artemiocortes8556]

I got a 9% interest rate on my car I have a 727 fico score 9 ,never missed a payment , where would be good places to check for refinancing on my car? Mainly trying to get a lower Interest rate and same payments and term.

[@DiamondEdwards]

I spoke on this in detail in this video. Credit Union is where I would start..

[@keianasimpson7162]

What did you end up doing? I have a 9.45 APR too.

[@sandyc84sc]

This will be my second time refinancing my car loan. I have a balance of $7,000 left with a 7% interest rate. Is it still worth refinancing if I can get a lower interest rate?

[@DiamondEdwards]

How fast are you going to pay it off? The interest rate is not the sauce, you making extra principal payments and paying it off ASAP is the sauce and that will make the biggest difference. Depending on your credit score and the age of the car 7% may not be a bad rate. Any reduction in interest rate will save you money however it may be so insignificant that it is not worth the hassle. Also, if you do refi don't fall into the trap of thinking you did something special and slow down your repayment. Keep the intensity up and get it gone for good. I had $30K @4.99% with a goal of paying it off within 2 years so I did not refinance. I used that as motivation to keep the heat turned up and it worked. If I had refinanced I would have save a few dollars but not enough to make a difference in the big picture.

[@mikkey246]

@@DiamondEdwards wait, sorry. But wouldn't it have been worth it to keep the heat and refinance to save a few dollars?

[@Warfieldization]

The most valuable information on KZbin

[@EastSideModestoX4]

I have a 2010 car can i still refinance?

[@DiamondEdwards]

Getting long in tooth. It will depend on the lender but at this point I would focus my energy on paying it off. No one wants a loan on a 11 year old car. You got this and you don't have to have a car payment.

[@kofi3719]

Got a 2016 Honda Accord for 20,000 at 13.3% for 72 months. $400/m Finance charged me an extra 9k bringing my total to 29k. Way more than the car is worth….What do I do cause the car was listed for 16,900. I got got help please. I was told to refinance after 6 months. Would doing that bring my finance charge down?

[@mprubio84]

I would love to refinance through my bank navy federal but I think they don’t let you apply extra payments to the principal

[@DiamondEdwards]

I believe you are correct however, you could get the same result by making extra payments BUT HERE IS WHERE NFCU GET YOU...They will apply the extra to your next payment and reduce it by that amount. If you pay a lot extra one month say $2k they will show your payment due is $0 for several months! IT'S up to you to continue making payments. If you stop you lose the momentum.

[@brianhand9928]

This guy is clearly just trying to help people shut the fudge up and listen to what he is saying. If you have questions reach out to him in the comments I have seen him personally respond to a couple already because I was going to.

[@CM-dq2ql]

I have a brand new truck. I owe 44k right now i was going to pay 30k towards the principal. Is a good idea to refinance the 14k balance left on the truck?

[@baddestebony3504]

What if I haven’t been successful with trying to get refinanced😢

[@tigerwood4038]

Wow New sub🙌🏿🙌🏿

[@omarsharif3503]

What if I want to refinance my new 2021 for a older 2015 used car that’s worth less. Also plan on giving them a down payment in addition , please help!!

[@DiamondEdwards]

Do you mean trade in your 2021 for a 2015? Cover any negative equity out of pocket and you will be fine. If you want to reduce your monthly expenses. I would sell the car pay the negative equity out of pocket and buy a cheap car for cash while you save up your money.

[@kc6442]

At 6:23, they forgot the "M" in your name. 😂 I'll have to pass on that union. Jokin. But still 👀

[@keianasimpson7162]

I currently have a 9.45% APR on a 84 month term. I made a mistake and looked at my monthly payment cost instead of my term and interest. I don’t have much credit history. My oldest line of credit is in 2019. I have a 757 credit score but because I don’t have much history I keep getting offered bad deals. One credit union offered to refinance my used 2020 car at $612 at 8.25% and another at $475 at 7.25% all of which I chose 48 months. So what I’m gonna do is wait it out for 6 months and refinance. My goal is 3% but banks just not looking at me. Thanks to make more payments down on the principal , lower interest. I see that instead of paying my car off in 2029 I could potentially pay it off in 2024. My question is how to utilize more of my credit? I’m already getting a bill in my name that is paid monthly and I changed my debit card on Amazon to my credit card..

[@josearellano3670]

Unfortunately just being patient is what you have to do to build up credit history but if you’re already in the 750 range, keeping your credit utilization at 10% instead of 30% helps rack up points towards 800

[@princessamaigbobuche1905]

Please I’ve a question that bothers me, I did auto loan in February this year and my internet rate is 10% because of 640 credit rate, and my monthly fees is $628 and my total loan still remains almost the same within 6 months, I want to refinance now and see if I can get low rate for my total car loan rate. So Can I go ahead and refinance now or should I pay off some money to get my total rate down or low??

[@DiamondEdwards]

You will have to improve your credit score to get a better rate. With 10% interest most of your money will go to interest. I would get rid of it or focus on paying off the $32. Here is a video that goes into more detail kzbin.info/www/bejne/e32Uep-vestjY80

[@Dixon_Cider]

Excellent video brother thank you very much!!! Q. Do u think it would be worth refinancing the remaining 11k on my car? That's the last debt I have. I got a 8.5% rate with pnc that I signed with with a 760ish fico credit score but now its 816! Could one realistically get it down to under 5% or even 4%? I know nothing about this stuff, I'm a musician 😂 blessings and continued success king! 🙏🏼

[@DiamondEdwards]

It's possible to lower your rate but that will not save you nearly as much money as paying it off within the next 12 months.

[@virtues487]

So okay im confused. So on my old auto loan i had a 12 percent interest and ive paid every month last year and today i did my last payment with them. Still have 27k left on it and been doing a monthly payment of 607 a month. I decided to refinance and now my apr is 8 percent with a monthly payment of 588 but my principal is now at 32.5k. Which is more than what i had on my last one? Did i messed up or will i get a refund of my previous payments to go to the new auto loan?

[@liv9175]

I’m so sad. I know it’s my fault but my parents died and I had to get a car so I went to the dealership by myself and the salesman was so pushy and talked me into paying $450 a month for my new Jeep. Which I cannot afford at all and I’m kind of freaking out right now idk what to do

[@DiamondEdwards]

I am sorry for lose. DM me on IG@DiamondDEdwards and we can go over your options. I'll be up front, they may not be pretty but you always have options.

[@nikkaeloisagales213]

I couldn't find you tho 😕 I need help too

[@boscorivas0605]

The best 12 minutes

[@DiamondEdwards]

So Kind!

[@akamaji5476]

I owe 29k on my challenger with a high interest rate..I pay 891 a month…should I refinance or trade it in…I wanted a new car…one dealership told me to put 8k down and I’d be good..if I appraise it or trade in I’d be upside down like 13k-16k..what’s the best option…I was trynna get a brand new charger..can anyone help decide?

[@nicolemarie1909]

I still owe 4314 on my car loan at 5.89 interest, my payments are 237.20 a month. The loan is till 2023 should I do it

[@DiamondEdwards]

What would save you the most money would be to come up with $4,314 as fast as possible. I would keep the loan and focus my efforts on ways to make an extra $4,000 so you can start driving with no payments. You can get this thing paid off long way faster than 3 years! You got this!

[@nicolemarie1909]

TY for your advice

[@ejcorinealdi]

What about if you already have your vehicle paid off, can you get a cash out refinance on it or a vehicle line of credit?

[@DiamondEdwards]

Don't tell nobody but yes can and yes it is a bad finance move. If your need cash why would you create a new payment. A better option would be to sell the car, buy something cheaper and use the difference for whatever you need. Money in your pocket and NO PAYMENT! Remember debt always works in you mind rarely pans out the way we planned it.

[@breinspiredd]

What all paper work do I need to have with me when going into a bank?

[@DiamondEdwards]

10 day payoff quote and current lenders information.

[@breinspiredd]

Thank you

[@princessamaigbobuche1905]

I want to buy a house and Am looking to start applying in few months time, but I currently have a car loan of $32,000 with interest rate of 10%. So should refinance my auto loan to get a lower rate or just pay off the principal to reduce the total amount? Am not sure which of this will help me in getting a good home loan.

[@DiamondEdwards]

Know your score and if it can take the hit of a new loan then go for it but if it was me I would hold off on any changes. The 32k loan is increasing your DTI and has more of an impact then the 10% interest rate. You credit score will determine if your approved or not and Debt to income ratio will impact your loan amount. Reach out to a mortgage broker and confirm. Good Luck!

[@wilokush7435]

I have a Question I owe $14,230 on my car with a 15% Interest rate on it & I also have 49 payments left, I can Refinance it for 4% but should I do a 48month plan or extend it to 60months to give myself a little more cash flow to help pay off other debt?

[@DiamondEdwards]

48, 48, 48 or even better 36! I bet your payment is be close. NEVER extend a car loan. It will always cost you more money in interest paid. Get that thing refinanced and paid off as quick as possible so you can use that payment to start earning instead of costing you interest.

[@juanguzman1563]

I’m confused, looking at refinancing my car loan...with all the coverages and warranties I have right now with my current car, will that change if I try and refinance through another bank. Will I lose the warranties and coverage that I have as of now.

[@DiamondEdwards]

You have to look at your paperwork to see if anything is contingent upon your existing loan. Example if you have insurance that pays off the loan if you die that will end if you refinance because that loan no longer exist. Check your documents. It may be a good time to look at cancelling some of those warranties. All that stuff they sell you in the finance is usually overpriced junk.

[@keianasimpson7162]

You gained yourself a new subscriber! Last weekend I cancelled my warranty and gap insurance. Saving me $3,400. Finance department seemed so irritated toward me and tried their absolute best to persuade me to keep it. They told me doing this will not lower my monthly payments. And they said the check will not come back to me. But they didn’t know I knew ahead of time it’ll go toward my principal . :) Plus I already have existing warranty on the car thanks to looking at Carfax. So once was a 24k loan will now be a 21k loan. I just gotta make certain they issue the check to them. And I have signed documentation.