The dealership keeps callig.

think Glocks are the more finically responsible option though, so in this context its better.

 

50 bucks less a month but adding 2 years to the loan.

 

He'd be paying interest on interest.

 

It's not so much the new vehicle, it's the $800 dollar a month payment that increases his DTI. That $800 dollar payment comes right off what he can get approved monthly for a mortgage payment.

 

Number one...if the dealership is calling you and telling you they can do you some perceived favor you are getting screwed...now that that is outta the way.

If you like your truck and the only reason you are considering trading is for a lower monthly payment, just refinance your existing truck. Even with a point or so higher on the interest rate your payment will drop, you are borrowing almost half the amount of money.

You said that the lower payments in a couple of years will come in handy when you buy the house so refinance the truck now..drop the payment..continue paying your current payment until you buy the house and need a few hundred dollars more a month that is not allocated.

Doing that more than likely would allow you to pay the truck off almost the same time you would have anyway..

.if in the mean time you decide you want to trade the truck because you want something new (as opposed to just a payment) you will have paid down more on the principle (buy paying more towards the principle in those years before the house is bought) and be in a better position with more equity to put down on the next vehicle.

If you really just want a new truck...then do whatever you think is best.

 

And people don't have to gucci a Sig to make it perform.

 

This is also correct, that hard pull on your credit will drop it a few points, not to mention change your debt to income ratio, which could cost you thousands if not tens of thousands in interest on the home loan.

An extra point in interest on a car loan costs a few hundred over the course of the loan, on a mortgage...it pretty steep.

Honestly if I were buying a house soon, I would throw as much money at lowering the debts you have while you have chance, it will pay off when it comes time for that interest rate on the mortgage or increase your buying power.

 

Glocks are the 1st gen tacoma of the firearm world. Plain, not that comfortable but reliable as hell.

 

Eh, I wouldn't do this. In general, refinancing without dropping the term length isn't a great financial choice. The exception would be if you desperately need a lower payment or if your APR is outrageous (which, given current rates it isn't). In this scenario you're paying more interest total and end paying for ~8 years before you're done.

 

Its the total debt that does that...right now his debt is 29k...new truck total debt will be closer to the 50K that he started out with, increasing his debt to income ratio.

 

It can be if you have the discipline enough to double up your principle payment shortening the term even further, and in the case of the OP, needing a period of adjustment when the new house bills start stacking up.

 

Arizona is the biggest live outside your means keep up with the jones state which is why we have the most inflation and you can’t find a new car anywhere. I remember driving into my new first home. I just bought a c43 amg mercedes. Within 2 months everyone around us had Porsches bmws Mercedes etc brand new complex with all paper license plates lol. When I moved to Hawaii it was a nice change if you drive nice cars or bling you were looked at as a dbag.

 

your getting ripped off were your buying

https://www.basspro.com/l/centerfire-pistol#f[brand]=GLOCK,Sig Sauer

 

You're* Where*

Was just showing MSRPs. Can't compare sales prices to MSRPs.


Everyone should own and run what they want. I like variety in the market. Don't care what others run because I can run what I like. Was purely a joke.

 

DTI is based on monthly payments when going for a mortgage. Most lender wants to see 45% or lower DTI including what the pending mortgage payment will be.

a 25k car with a $600 dollar payment will produce the same DTI as a 60k car with a $600 payment. It's all about what you can afford per month when underwriting looks at your financials.

 

I was just about to say the same thing...lol

 

I guess the rules have adjusted since I have had to buy a house. But that has been a few years

 

Except there are lots of other options that are equally reliable. That's the only part of the comparison that doesn't fit 100%.

 

Your the one that brought this crap up, and you post stay on topic when you start loosing

 

Which a few months back was 200k in loan amount