Category Archives: Auto Refinancing

What You Should Do Before Refinancing Auto Loans

If you are looking to save on your car loan payments, you should think about refinancing auto loan. You can save on interest by refinancing you loan if the market interest rate has gone down and your credit score has improved.

Research About Refinance Car Loans
Applying for a refinance auto loan should be done with caution as it is an expensive financial venture and your credit score will be at stake. The loan can make or break your credit history. Therefore, before you sign the loan agreement, determine whether you will afford the refinancing.

Your income should guide you in determining the amount of car refinance loan that you should apply for. It is good practice to apply for a loan whose monthly payment does not exceed 18 percent of your gross income. If you have found a good loan deal but the payment is higher, find out if the lender can extend the term of the loan. This will reduce your monthly payment although the total cost will increase. Compare loans from different lenders to find one that will fit your budget.

Get Low Interest Rate Car Refinance
There is nothing as weary as negotiating the price of a car loan with a dealer. Applying for a refinance loan is like applying for a loan for the first time, only that this time your credit score is better. You should take the car refinance process seriously as you will possibly have to pay back the loan for a period of 2 to 5 years. Therefore, be patient and understand the repercussions of any agreement you make with the lender.

Do not be compelled to sign up for a refinance loan whose payments you are not comfortable with. If the lender does not seem to want to reduce his costs to meet your budget, walk out. There are many other lenders that will be willing to finance you at much better rates and terms. When you are in the finance and insurance office, go through all the documents that you are asked to sign. If you are applying online, compare the rates of different lenders to get a competitive offer.

The Effect of Your Credit Score on Your Loan
When you are refinancing a car loan, the lender will look at a number of things to determine whether you can afford to pay back the new loan. To begin, your credit history may be looked into. If there are instances in the past where you did not pay your loans on time, were late with paying your bills or you have outstanding debts, lenders are likely to reject your  application.

Therefore, it is important to consider refinancing when your credit score has improved significantly. If you have a history of defaulting debt payments, your credit score is likely to be low. Usually, the lower your score is, the greater the chances that you will not be approved for a loan. Even if you get financing from a subprime lender, you will pay a high interest rate for it. Therefore, it is important to maintain a positive credit score record especially if you will want to refinance your loan in future.

Refinancing Auto Loan: Important Considerations

When you compare refinancing auto loan and home mortgage at a lower interest rate, you will realize that the latter is expensive.  Normally, processing fees for the auto loans are pegged at nominal rates and there are no appraisals involved. Since these rates are competitive, it pays to shop around. In fact, USA Weekend Magazine once wrote that many credit unions’ core business is in refinancing auto loans.

One of the main reasons why many people choose to refinance auto loans is to save money. In some cases, some people are forced to pay higher rates because of their credit score, but once they improve their score; chances are that they will pay less through refinancing, which in turn lowers their monthly auto payments. If you can, you can clear your car loan sooner if you continue paying the same amount every month even though they have been lowered.

Technically, you can save money on refinancing auto loan at one per cent less than what you are currently paying.  This means you can save a substantial amount if you can refinance the auto loan at several point lower than what you agreed when you were taking out the loan. The only possible catch in this case is that you may have to shift to another lender. However, once you have made your payment for the first six months on timely basis, you will not have a problem finding one.

Lenders will not be willing to give out a loan that is more than the value of the vehicle, simple because the car itself is the collateral. In essence, many lenders will not refinance auto loan unless you owe more than $7,500. Therefore, before you start the process, find out how much your car is worth. There are many resources on the web that can help you with this. The key thing to remember is that lenders do not refinance auto loans on the basis of the value of the car but rather the amount you owe on the original loan.

It does not matter how bad your credit score was when you first took out the loan, if you have taken the necessary steps to improve it, you should be in a position to find a lower APR than what you could be paying. Although you may not pay the lowest loan rates on the market, but you will save some money both on monthly payments and interest rate.

Finally, before you move on to another lender, talk to your lender first. If you have been making your payments on timely basis, he or she may be willing to lower the rate on the loan. If you are successful, it will save you both time and money. If you do not succeed securing a lower interest and you must look for an alternative, check whether there are any prepayment penalties that you lender levies. In most cases, the biggest chunk of interest on a car loan is paid during the first half of the loan duration, which means the earlier you pay, the more you save. Lastly, note that the interest rates levied on used car loans are usually higher than those charged on a new car.

Tips On Applying For Car Refinance

As the market finance rates drop, many people are considering refinancing their home loans. However, not many people know that refinancing car loans can also help them save thousands of dollars on their payments. A refinance car loan is easier to apply and get approved for. However, you need to know the amount you will be saving and meet the requirements for refinancing of the lender you wish to approach.

The process of refinancing an auto loan is easier than the initial application for auto financing. You can apply or refinance at the My Auto Loan website. The application process is simple and free. You will have to provide your name, address, telephone number and credit score and wait for feedback from the company.

My Auto Loan will send the information you provide to its pool of lenders. You will then be contacted with information of the lenders who wish to refinance your loan. You do not have to accept a refinance offer from any of the lenders.

What to Check Before Refinancing your Loan
Refinancing is meant to help you save on your loan payments. However, it is not automatic that you will save. There are a number of factors you should consider before you choose to refinance. These include:

a) Credit score
Your credit score will determine whether you will save if you refinance. If you applied for a loan when you had a poor score, but your score is now above 620, you should refinance. Lenders will use your score to determine how much interest to charge you for the refinance car loan. The greater the improvement in your score, the more you are likely to save.

b) Market finance rate
If the average market interest rate has dropped since you were approved for an auto loan, you can save by refinancing. The amount you can save can reach a few thousand dollars per year depending on the total loan and the change in the interest rate. Before you apply for car refinance, calculate the savings you will make. Find out if your lender charges pre payment penalties which may negate the savings you may be looking for.

c) Current loan balance
The amount you owe on your current balance should help you to decide whether refinancing will help you save. In most cases, you must have a significant amount of balance on your current loan to qualify for refinance. Most lenders do not finance borrowers with balances that are less than $7500. Check your current loan balance with your current lender before you start searching for a lender to refinance your loan.

You should shop around to get a reputable lender to refinance your car loan. The lender should charge a low annual percentage rate and should have lenient terms and conditions. My Auto Loan can help you find refinance lenders quickly for free. Simply fill and submit the online form at the website and wait for feedback on the lenders that are interested in refinancing your loan.

Approach Car Refinance With Confidence: Trust Myautoloan.com

Hearing “car refinance” can be a bit frightening for some people because they do not know where to start. Added to that, getting the right loan can be so hard and not all lenders have their clients’ best interest at heart. Luckily, Myautoloan.com can not only remove the uncertainty, it can also put control back into your hands by giving you choices.

Reasons to Consider a Car Refinance Loan

There are a number of reasons to consider refinancing your car and in this economy it may be one of your best cost cutting decisions. Remember however that car refinance moves are best made when you have a good credit score so always check this before seeking a loan since a good score is likely to get you a better deal. In terms of refinancing, the reasons and benefits are closely intertwined:
1) Lower payments: if you are struggling with your car payments then refinancing can get you a loan that offers a lower monthly amount. This means you keep making your payments and you avoid credit trouble that can haunt you later on.
2) Lower interest rates: refinancing means you get a loan with a lower interest. This reduces how much you pay overall as well as monthly and increases your spending power by putting money back in your pocket.
3) Getting a better deal than your dealership offers: even if you can afford it there is no reason to pay more than you need to for anything. No doubt your car dealer gave you the highest figure he or she could get you to pay and refinancing allows you to be in control of just how much your dealership makes from you.

How Myautoloan.com Can Help

Myautoloan.com allows you to get loan offers fast. You do this online at your own convenience, it is private, and it is uncomplicated. Plus, you get choices, an average of four in fact. This means you can compare loans, find the one that is best for you, and confidently make a decision without wasting the time it normally takes to visit or contact different lenders.

Additionally, the site is user-friendly and has a host of resources to help you understand what you are doing before you even start looking for loans. See up-to-date car refinance rates, compare APRs, or see how much you can borrow with the click of a button! Wondering how much you may pay? Myautoloan.com can show you that too; get estimated quotes on loans ranging from 24 to 72 months (with six term options) just by entering your intended loan amount and expected interest rate.

Car refinance is not something to walk into blindly because you may end up with a financial nightmare or a loan that will cost you more than the one you currently have. This is why you need a company that is experienced, accredited, and safe. Myautoloan.com operates in 48 states, has a 7 year history, A+ BBB rating, great security and your confidentiality is respected. Combine this with its convenience as well as superior customer support and what you have is the right tools and the power to make refinancing work for you.

Car Refinance Loans: Lower Payments, Lower Interest

If you borrow money to pay off your existing car loan, you acquire a car refinance loan. Although similar to a mortgage refinance, the process is quicker and easier. When you refinance, your new lender pays off your old loan, and ownership transfers to the new lender. The reason to refinance a vehicle is to reduce interest costs, lower monthly payments or both.

If you want to reduce the total interest you pay, you may not want to either keep the terms the same or reduce the term. However, if your intention is to make smaller monthly payments, you will need to extend the terms of your loan. Keep in mind that extending the terms will increase the amount of interest you will pay.

If your existing lender has any prepayment penalty fees, be sure to factor these costs into your refinancing decision. What at first appears to be savings may not be such a good idea after all. State registration and lien holder fees vary from state to state, but generally do not amount to a great deal of money. However, know what they are and take them into consideration as well.

Currently, because interest rates have dropped substantially, car refinance has become increasingly more popular. How much you save will depend on the balance remaining on your current loan and the difference between your old and new interest rates.

Before refinancing your auto loan, be sure to run a credit check. You can run a TransUnion free credit report at the myAutoloan.com website. Needless to say, your credit history will impact on the interest rate lenders will offer. If there are any errors in the report, be sure to have them corrected.

If you have a high credit score, but a lot of old accounts that you no longer use, be sure to close out these old accounts before applying to refinance your car. Some lenders will view an individual with a great many charge accounts in a higher risk category, and will therefore offer a higher interest rate. Your previous car loan definitely increases your chances of being offered an excellent interest rate.

Make sure your refinance loan application uses the same names as your current car loan, and have your account number ready. Generally, to refinance you need to have at least $7,500 left on your current loan. You will also need the year, model and 17 digit Vehicle Identification Number.

You should check the value of your car before beginning the refinancing process to ensure it has kept its value in relationship to what you still own. Your new lender will not loan you more than what the car is worth.

The online auto refinance application at myAutoloan.com is simple to complete. DigiCert SSL encryption ensures the information you submit is secure. The application form takes between three and five minutes to complete.

Since 2004, myAutoloan.com has consistently had an A+ rating with the Better Business Bureau. For seven years the company has provided loans in 48 states and serviced over 1.5 million customers. If you are considering a car refinance loan, now is the time to visit myAutoloan.com.