Refinance My Car
When it comes time to renew your car loan, it may be time for a refinancing. If you currently have a car loan and are paying more than 36% APR, it may be time to refinance. Refinancing can save you thousands of dollars in interest over the life of the loan. You may be able to get a lower interest rate, a lower monthly payment, or a longer loan term. No matter which option you choose, you will save money on your car loan.
When you refinance, you have to pay closing costs. Closing costs are the fees associated with getting a new loan. These fees can vary from lender to lender and are not included in your APR. Closing costs can range from $500-$1000 depending on the type of loan you choose and the lender.
When considering refinancing, there are a few things to consider:
The type of loan you want: Refinancing options include an extension or consolidation of your current loan, a new auto loan with a different lender, or a new auto loan with your current lender. The length of your new loan will determine which option is best for you. If you want to extend your current term, this is the best option for you because it will save money on interest charges over time and not require any additional payments right away. However, if you want to lower your monthly payment or get a lower interest rate, refinancing with another lender is the way to go.
A lower interest rate: If you have good credit, refinancing can help save money on interest charges over time by lowering your APR through either a consolidation or extension .
A lower monthly payment: By extending or consolidating , it allows more time for interest charges to add up, which can lower your monthly payment.
A longer loan term: If you are the type of person who likes to trade in their car every couple of years, a longer loan term could be beneficial for you because it will allow you to break up the cost of the car over a longer period of time. It also will make it easier to trade in your car because you are not paying such a high monthly payment.
By refinancing, you have more options and more control over how much money you spend on your car loan. Once interest charges start to add up on your current loan, it is time to consider refinancing.