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How soon can I refinance a car loan?
My wife and I live in California, and we are expecting our first child. Being soon-to-be new parents, we were unaware of the cost of all the baby products and items we would need. I want to refinance my car loan to help save money on our monthly budget. How soon is too soon to refinance a car loan?
Phoebe Mah · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congratulations — this is exciting news! But you’re right: children are expensive. Alternative ways to save money or put money aside to pay for baby products are essential. Depending on how long you have been paying for your monthly loan payments, you may be eligible to
refinance your car loan
soon. In fact, no limit exists on when you can refinance.The major consideration is whether you have positive or negative equity in your vehicle and whether you can find a more favorable rate. If you’re upside down on the car loan, most lenders won’t refinance the vehicle unless you have superb credit and income.
Furthermore, your interest rate is unlikely to change in just a few months. That being said, if you can wait a little bit, personal finance experts recommend that you wait at least six months to refinance a loan. This time frame allows you to rebuild their credit after having a hard inquiry on their credit report and shop around for a better interest rate.
Once again, congrats on expecting your first baby!
If you want to save more money for your child’s future, take a look at your car insurance policy and compare quotes with the Jerry app. As a licensed broker,
Jerry
helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!View full answer
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