Thinking about refinancing your current car loan? An auto loan refinance, while still somewhat new, is much more common today than it was just a few years ago. There are a few common assumptions consumers make that may that keep them from considering an auto refinance. Things such as assuming they won’t qualify or the process is too complicated to even bother. Following are five of the most typical questions and answers about the process of refinancing your auto loan.
1. Q: Can I refinance if I owe more than my car is worth? A: Yes, because many lenders recognize that cars depreciate faster than most any other large purchase.
2. Q: Can I get an auto loan refinance even if I have bad credit? A: The good news is yes! If you have made regular payments on your current loan then many lenders will see you as an an excellent potential customer. Plus, if your gross monthly income is greater than $2000, you will likely have options with various online lenders.
3. Q: Is shopping around for a new auto refinance car loan difficult or complicated? A: No, today shopping for auto financing online is easier than ever. OpenRoad recommends that you shop around so you can be sure that you obtain the best rate possible. Applying to several lenders is important because refinancing rates can vary.
4. Q: Is there a cost to apply? A: Some lenders do charge processing fees related to the application. OpenRoad Lending does not charge an application fee plus there is no obligation to use the financing once you apply. Other state fees may come into play when it comes time to reissue a title and license with the DMV and pay taxes, these fees end up costing between $5 and $80 depending on the state and process.
5. Q: What if I am self employed or have had a bankruptcy, can I still qualify for an auto refinance? A: Lenders will review the applications of self-employed individuals in more detail, but you can still be approved for the loan. You may need to provide two years worth of federal tax returns and supply references to verify income. If you have filed for Chapter 7 or Chapter 13 bankruptcies, you can still be approved if they have been discharged.
In summary, now is a great time to look into an auto refinance. Interest rates are still at historic lows as the Federal Reserve has cut the Federal Funds Rate so the bank’s cost of money is cheap. OpenRoad is a leader in auto refinance and has helped tens of thousands of customers of all credit types. If you are ready to see if an auto refinance is right for you then please visit www.openroadlending.com and let us see if we can help you get a new lower rate and lower payment.