So, you love your car, but not the payment. An auto refinance loan may be right for you. Here are four reasons why you should consider refinancing.
1. You have a high interest rate on your current loan. Over the lifetime of a loan, even a few percentage points in decrease on an interest rate can make a very big difference in the total amount you’ll pay. The good thing is, most loans are eligible for refinancing.
2. Your credit score has improved. If you’ve worked hard at establishing credit since you got your car loan, you may now be eligible to get a rate reduction by refinancing.
3. The dealership you purchased your car from didn’t give you the best rate. Occasionally car buyers are just in a pinch, or overly eager to drive the car off the lot and end up taking a deal that’s not so great from the salesman. Refinancing may be a fantastic option, now!
4. You want a lower monthly payment. Loan payments can be lowered by either taking a reduction on the rate or extending the length of the loan. If you’re in a situation where you just need a break, refinancing can really help you out.
Is there a catch to all this refinancing goodness? Well, the only caveat is that if you owe significantly more on your car than it’s worth (if you’re “upside down”) refinancing may not be an option. You’ll need to pay down the loan enough so you’re no longer upside down in the loan. That being said, it’s not impossible; just check with a loan expert to see what your options might be.
Be Prepared. When you submit an application for auto refinancing, the loan expert is likely going to ask some questions. You’ll have to provide information about your current rent or mortgage payments, your residence history, and your employment status. You’ll also need to have details about your vehicle – what the current mileage is, what the remaining loan balance is and maybe a few other items related to the vehicle itself. If you’re prepared with this information, the process will be faster and smoother.
At WesTex Federal Credit Union there are no processing fees or down payments required to refinance your vehicle. You will have a loan specialist that helps you through the process from start to finish. Our team has helped thousands of people save money with an auto loan refinance. The process is very quick and easy. Once your credit has been approved, your loan specialist will let you know when your documents are ready to sign. Then, just enjoy the savings!