I refinanced my car!
I joined a credit union and applied for a used car loan and got approved! I just faxed over the paper work that they need to verify my income and get a copy of the title of the car, so I should have the check within a couple of days.
How will this impact my monthly finances? I brought my interest rate down from 7.4% to 2.99%. This means my car payment will go down from about $250 per month to about $218 per month. This is a net savings of approximately $32 per month! Sweet!
A lot of times auto refinancing gets a bad rap because it can be costly to apply for a new loan and usually the interest rate reduction isn’t so big to make the hassle of the application process worth it. This is why I’m now a firm believer that credit unions are the way to go. It was super easy and the total cost to join the credit union and open a savings account (you had to have some kind of account with this credit union in order to apply for the a loan) was only $25. That’s it! Those fees more than paid for themselves in the first month!
What a great way to kick off the month of July!