Refinanacing my car,questions please answer!?

Question

Alright i currently pay 427 a month for my 2007 nissan. but im 19 and its too much for me. If i refinance, will my monthly payment go down? will my apr go up? i currently have a rate of 8.4. What will happen if i want to refinance? i currently have payed about 5k off. what should i do? keep the same rate and monthly payment or get a new one? help please

Answer 1

First of all, you can't refinance if the current market value of the car is less than your loan balance.  Second, at 19, you are not likely to obtain a lower interest rate.  At best, you could refinance for a longer term, which MIGHT lower your monthly payment a bit.

Answer 2

You have made 5k in payments?

Or you have actually paid the principal down 5k.

Usuallu each payment only 40% of your payment goes to the loan. The rest is interest. Refinance may save you a little money but not as much as finding a car half as expensive you can live with and trade it in. But make sure you get a good deal. Right down what you want before you go to the dealer on a piece of paper. And if they dont meet those terms leave. Come back a week later and try again. Guaranteed the will make the sale. They are too hungry not to.