Everyone is always looking for a way to save a few extra bucks each month and there is no easier way to save money more than refinancing your house or vehicle. Here are answers to some of the most common questions relating to refinancing.
What is a Refinance?
A refinance car loan essentially is paying off your existing car loan and just getting another loan at a lower interest rate, extended term and ultimately a lower payment. Even if getting a better interest rate is not in the cards for you based on your credit profile, many consumers reset the term of their loan which makes a big impact on lowering those monthly payments. Do this along with a better interest rate and you could save a significant amount. Most lenders do not charge any fees associated with getting the loan, although many banks and credit unions will require you to have an account with them, which may be required to have a minimum balance.
Who Can Refinance?
Anyone who has a current vehicle financed can refinance that loan. However, there are certain vehicle parameters that vary by lender. Most will refinance any vehicle that is 2004 or newer that has less than 80,000 miles. There are some that will refinance up to 100,000 miles so if you fall into that category, be sure to search around. Any consumer who wants to lower their monthly payments, or just get a lower interest rate, can find a way to refinance a car loan. Companies that offer refinance loans will run a credit check, and based on that will either approve or deny your application. Regardless of your credit, you can find a lender willing to help.
Why Should I Refinance?
In the last few months, interest rates have dropped to historic lows. By choosing to refinance a car loan you can likely save yourself a good amount of money each month. Your new loan will very likely have a lower interest rate, and a longer term than your current loan, both of which will lower your monthly payments. Refinancing is also a great way to build equity in your vehicle so you can get it paid off sooner.
Where Do I Refinance?
Most financial institutions will have options to help you refinance a car loan, but if you choose to refinance a car loan online, the process is much faster and easier for you to complete. OpenRoad Lending has an easy online application that takes just a few minutes to complete. Once approved, you can download your loan documents and be on the OpenRoad to savings in a just a few hours.