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.