What you need to know about refinancing your auto loan?
It’s important to know the terms of your auto loan and what refinancing could mean for you. You may be able to save money and enjoy a lower interest rate if your original loan has a higher interest rate than you want, but there are pros and cons depending on your current financial situation. Read this article to find out more about when it might not be worth refinancing, too.
What is refinancing?
Refinancing is when you get a new car loan to pay off an existing one. This is often the best option if you’ve found a car with a lower interest rate and want to trade in your current car. Refinancing also makes sense if you want to make large changes to your credit card balances or consolidate debt into one lower-interest rate loan.
Why should I refinance my car loan?
Refinancing your car loan is a great way to save money. Some benefits of refinancing include lower interest rates, better terms, and more favorable monthly payments. You could end up saving thousands of dollars over the lifetime of the loan.
How do I refinance my car loan?
It is possible to refinance your car loan. The process itself is relatively simple and will depend on the terms of your original loan agreement. You should be aware that there may be fees associated with refinancing, and you may be required to take out an insurance policy if the value of your vehicle decreases.
What are the benefits of refinancing a car loan?
Refinancing your car loan can be a good idea if you want to lower rates, shorten your term, or get rid of pre-payment penalties. You can usually refinance your car loan with the same lender, but some lenders also allow you to refinance with another bank. Refinancing is typically less expensive than getting an auto loan from another lender because they don’t have to do as much work on the application process.
Is it possible to refinance a used car loan?
Yes, so long as the car is still under original warranty, has not been in an accident, and has less than 100K miles. Visit your local bank or credit union to inquire about refinancing your used car loan.