Before you go and apply to get a refinance car loan, there are a few things you need to consider. With any type of financial obligation, it is always good to do your homework and research your options. When it comes to refinancing a car loan, here are some things to focus on:
It is important to know before applying what your ultimate goal is. Do you want to just lower your payments? If that is the case, getting a lower interest rate is not the only way to achieve this goal. In many cases, you can extend the term of your loan and dramatically reduce those payments.
Have a good knowledge of your current loan so you can figure out how much you would actually be saving with a refinance car loan. You need to know what your current interest rate is and also what your current monthly payments are. It is also helpful to have all of the pertinent information about your current vehicle handy as well (year, make, model, mileage, etc.).
How Much is Enough?
You should have a set target for how much you’re looking to save by doing a refinance but be realistic. If you can save $10 per month in payments, is that enough for you to go through the process? That does not sound like much but on a 60 month loan it adds up to $600 in savings. Most refinance car loans see a larger savings than that. With no special application or processing fees charged at OpenRoad Lending, even the smallest of savings makes sense.
Watch for Fees
Be aware that most lenders do charge fees associated with a refinance loan. If a lender does charge a fee, watch the fees and ask for an explanation of each one. Remember, applying for a refinance car loan at OpenRoad Lending is free and you are under no obligation to take the loan after you see the terms and conditions of our approval. You owe it to yourself to spend the few minutes it takes to apply.