credit unions
    17 years
|
They are amazing.
Long story is we have a loan on wife's 2025. Doing a quick calc we borrowed 30%.
It was an irrational move as I sold a mutual fund for the full amount of the vehicle, this generated my problem with the IRS/capital gains.
But still took out a new car loan for 30%.
I sold end of June when the market hit 2 more all time highs (ugh how many since).
Anyway, the car loan was with a CU in MD. The new refi is with the largest in the nation, the one who advertises during the NHL games.
It went like this.
Applied online Monday evening--was NOT instantly approved. It was approved apparently 2 AM EDT Tuesday.
After work Tuesday, I drove to the branch, picked up the check, and immediately 2nd day air ($19) to MD. Dropped off at UPS Store 6:10 PM.
The check reached MD Wednesday before 10 AM, and got an email 2:40 PM Wednesday loan is closed and excess payment deposited to the share account.
Isn't it a bit unbelievable how efficient dealing with 2 credit unions is? I would not have predicted everything happening this quickly.
Well, for all this effort, we save $6/mo, and get a $250 incentive for refi. The rate was 0.5% lower.
I get that many probably think why bother? This amounts to maybe $550 total, all that effort?
Well, yes, I'm an ordinary person always looking to save. And, I like learning how processes work. This may only be $3/day interest (paid Wednesday to both loans), but what if a mortgage refi? Paying $100/day to both loans?
The only way this could have been even better? If we were in the DC area, I could have handed the check to the CU holding the loan, same day, and save $3 interest, and $19 UPS.
And if I use AI, online it says no this wouldn't happen, it could take 5 to 30 days for the above.
moral of the story credit unions, who don't have the same rules as banks, seem to value members and do what they say.
The end lol
I don't understand...
Doing a quick calc we borrowed 30%.
[...]
But still took out a new car loan for 30%.
[...]
This amounts to maybe $550 total, all that effort?
I'm sorry, but I don't understand any of that. Maybe I'm just not clever enough to think in those terms? What do you mean by "a new car loan for 30%". To me, that reads like you took out a loan for 30% interest. But I have to believe nobody would do that (would they?). So, do you mean that you still owe 30% of the vehicle cost?
What was the interest rate on your original loan? How many payments do you have remaining? What is the interest rate and duration of the new loan?
You said you will save $6/month and a total of $550. That suggests you still have almost 92 payments left to make on the loan (550 / 6 = 91.67). Is that what you mean?
Just trying to understand what that long post actually means in terms of the bottom line. I could be completely missing your point. But, just based on a quick read, yeah, I would have to say "why bother?" I would go even farther and say that appears to be a much longer loan than I would ever take for a car, I've never gone more than 60 months myself. Then there's the aspect that you had to share a lot of personal information with some companies you probably know very little about.
Happy to be convinced otherwise though!
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