I'm hoping to get a new car (new to me, whether new or used) in the next few weeks. I need one badly and it can't wait much longer; my current car is over 20 years old, I'm already wasting money every week on a bad oil leak, and may face major repairs soon just so it will pass inspection.
But it occurred to me that if I need a car loan for that, then when I go to refinance my mortgage I will look like a bigger risk and have trouble getting the best rate. But I guess this could be a problem no matter which one I do first.
My current mortgage rate is 5.5% and I have probably at least ten more years before I can pay it off, paying as rapidly as I can with extra toward principal every month.
I could actually buy the car with cash, but that may not be wise since I'm guessing I could get a loan at 0% for some period of time.
My credit rating is excellent from all indications. At least one score is above 800.
Is that enough information to go on? Any advice is appreciated.
Read more: What should I do first, refinance my mortgage or get a car?
