When most people think about refinancing their car loan,
they are hoping to lower their monthly payment or lower their interest rate. Some times are better than others to refinance your vehicle, so the question is, “Is now the right time?” To save you from spending more money than you need to, here are a few tips that can help you decide why now could be the right time for you to refinance.
Every bank and lending institution is different when it comes to the guidelines and requirements for refinancing,
so you have to be sure that you understand all of the details involved. We have a tool on our website that can help you to calculate the loan
to see if refinancing would be the right option for you.
Sometimes a lender will have prepayment penalties that they charge if you pay off your loan early.
Some math is required here to figure out if the amount you would save by refinancing would be significantly greater than the penalty, but if that is the case then refinancing would be very beneficial.
Being approved to refinance your auto loan also depends on your income as well as your credit score.
If your income has dipped any, refinancing can be a great option for you as it would lower your monthly payments and save you money each month. If your credit score has improved since you took out your original auto loan, refinancing now could give you a better interest rate, which would also save you money over the life of your loan.
If you are preapproved for an interest rate today that is lower than your original interest rate, refinancing now is a great way to save money as well.
If you read through all of these factors and tips and the answer to “should I refinance now?” is yes, give us a call now to go over your options and to get you approved with a lower interest rate and lower monthly payments to save you money!
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