Advice needed, My husband and I currently owe 10,000+ (2 years left to pay) on our current car loan with 401.06 monthly payments. We are thinking about refinancing the loan through our credit union for a better interest rate and of course lower payments. My question is since we are going to be shopping for a home loan in December of 2003 would this be a wise decision as far as opening up a new account, etc.??
Mortgage companies look at debt to income ratios, so from that perspective a lower payment could help. I don't know about the effect that it would have on your credit scores. Sorry I can't be of more help.
Shopping for auto refinancing is considered the same as shopping for auto loans & mortgage loans. To the creditors those types of inquiries show that you are shopping for the best deal. It's different from credit card inquiries that show you're trying to get more credit, which could mean you're in serious debt.
