Refinancing a mortgage this summer. Safe to do car loan in before?

[Kglorioso]

So my boyfriend and I will have owned our house for 2 years in june and want to refinance to get a lower monthtly payment. We do have an FHA loan, I don't know if that makes a difference or not. But I would like to refinance my car loan to get lower payments as well before we do the mortgage. Is this a good idea or should I wait? This is the first time either of us have had a mortgage before.

Thank you in advance!

 

[Jzone]

So my boyfriend and I will have owned our house for 2 years in june and want to refinance to get a lower monthtly payment. We do have an FHA loan, I don't know if that makes a difference or not. But I would like to refinance my car loan to get lower payments as well before we do the mortgage. Is this a good idea or should I wait? This is the first time either of us have had a mortgage before.

Thank you in advance!

You refinance mostly to get a lower payment but also shorten the length of the loan. Has the interest rate gone down that much on your loan in 2 years to make a difference? A good rule of thumb is a 1.5-2.0% interest reduction to make a refi worth doing. There are dozens of calculators on the internet to show you what you could save by refinancing.

Make sure you know your closing costs and any other fees. Closing costs are usually 2% of the loan. And if you plan on moving in the next 5 years, think twice about refinancing. The recovery/breakeven point is usually 3-5 years.

And I wouldnt refi your car loan until after your home loan. May not be a big deal but you will probably take a small hit on your credit score when you refi the car.