Face of auto refinancing
Everyone wants to save money, but most people don't realize refinancing their auto loan is one way.Why continue to pay a high monthly payment when you can easily slash down the amount by refinancing the balance of your car loan? Auto refinancing is the same as mortgage refinancing. As interest rate drops, car owners can take advantage by refinancing, lowering their monthly car payments, and paying off the auto loan balance quicker. Just by taking 10 minutes to fill out an application, you can save yourself a lot of money. At Keaton Financial, we make it easy for car buyers and their auto loan needs.
Secret way of benifits
Auto loan refinancing is also a good option for people who have had credit problems in the past, and ended up paying a high interest rate on their loan. Most people don''t realize there are banks willing to help customers lower their car payments, even if they have credit problems. For someone with a high APR (annual percentage rate), this could mean a savings of thousands of dollars.So how does it work? Basically what happens is the new lender takes care of the difference of paying off the original interest rate, while you continue paying the car off to them at a reduced rate. The title to your car is then transferred to them, and the time it takes you to pay off the ever-increasing cost of owning an automobile these days is drastically reduced.
How friendly refinancing
The auto refinancing process is fairly similar to the mortgage refinance process. Basically, you obtain a new loan at a lower rate to replace your first loan. A few years ago, auto refinancing was pretty rare. Now that interest rates have dropped dramatically, auto refinancing has become increasingly popular. If you decide that you want to refinance your loan, look online and with your local credit unions to see what rates you could obtain. Apply for a no obligation auto refinance quote online to see what rates are available today.
Much money-Auto refinancing
Refinancing can save you a lot of money, if you play your cards right. For example, if you currently have an auto loan for $23,000 at 11% APR for 5 years, you’ll pay $500 a month. If you can refinance this loan payment to $400 a month, you can save $6,000 over the life of the loan! The higher your current loan rates are, the more you can save by refinancing. Most lenders offer refinancing rates around 6-7% APR. This is higher than the auto loan rates you can receive for a purchase loan (as low as 3-4% APR) but is much lower than rates offered by dealerships or granted to borrowers with poor credit.
Who can Refinance
Car buyers who have an expensive auto loan or who want to reduce their monthly payments should consider refinancing. Consumers with expensive loans from a car dealer can save big by refinancing with a lower rate from an independent lender. Refinancing can also be helpful for people who want to buy the car they are currently leasing. If your credit scores have improved significantly since your original car purchase, you may also be able to reduce your rates by refinancing your auto loan.
Dangers in refinancing
While auto refinancing can help you save a lot of money in some situations, it may not always be a good decision. If you are thinking about refinancing, be sure to include all the fees and costs in your savings calculations. The fees required for your new loan could outweigh your savings. Be aware that a refinance may extend the term of your loan in order to reduce your monthly payments. This could result in increased costs over the life of your loan.
