During a time when monthly payments can add up on your home, your car and various insurances, it can be difficult to always make ends meet. If there was a way to lower your monthly payments in any of these categories, would you take advantage of it? You may think that the only way to effectively lower payments is to move into a smaller home or sell your current car and purchase an older model. However, by refinancing a car loan, you can achieve lower car payments by finding a lender that offers a better interest rate.
By shopping around online, you can probably find better rates than the loan you currently have out. There are a few qualifications that you need to meet in order to obtain the low rate you are hoping for. The first few points you should know about are that payoff amounts need to be between a certain dollar amount and the car you are refinancing cannot be too old. Typically, you may find that currently remaining loan amounts must be least $7,500 and no more than $30,000, and your car may need to be six years old or newer to qualify for lower car payments by way of vehicle refinancing.
The types of cars may have limitations as well. Some companies will not approve your application for refinancing a motorcycle, commercial or recreational vehicles. The mileage may not be allowed to exceed a certain amount in order to qualify for refinancing. Even certain car models are sometimes not offered refinancing options. Before you become too enthusiastic about obtaining lower car payments, be sure you fit within the boundaries of different companies’ loan requirements. Also, do not think that simply because your credit is not perfect there is no way to qualify for a refinanced car loan. You may still qualify for a bad-credit loan. However, the truth of the matter is that the better your credit score is, the greater chance you will be approved for a prime rate.
The process of applying for a refinance auto loan only takes a few minutes, and most online companies do not charge an application fee. This allows you to shop around and apply to many lenders to see where you can find the best rates that lead to lower car payments. If you are ready to save hundreds if not thousands of dollars over the length of your loan term, apply today and see what lies in store.