Two years ago w/ bad credit was given an 18k loan from Wells Fargo for a 96 Caravan. We still owe 14k (interest is 14.5%) and they refuse to refinance because value of van is only 8.6k. They say they can’t give us a loan for more than the value yet they did originally. Is there anything that can be done to help this?
We’re not trying to get out of paying them the money we owe them we just want to get a lower interest rate. They’re getting paid every month on time.
WOW, yes that was a typo I meant a 2006 no Idea why I put 96.
No, there is no way to "force" them to refinance or lower your interest rate. You signed a contract with them.
no it is their choice. those balloon loans are risky that way.
all you can do is plead with them. what they are doing is going to result in them getting van back. I doubt they want that. so see what they might offer.
best thing might be to give it back. a lot of people took advantage of you on this deal. better to start over with a car around $5,000 and get back on your feet.
No… they loaned you the $18,000… you owe that money back (with interest).
I hope you really mean a 2006 caravan. Because a 1996 caravan is worth about $1500.
If you can find $5,400 from another source to pay down the balance on the loan, you could refinance the remaining $8,600. See if you can get a personal loan for that smaller amount, pay down the balance, and then refinance.
There are some great deals with credit unions out there to refinance cars at about 5%, although your car might be a little on the old side for one of these deals.