Best Banks To Refinance Auto Loan

Best Banks To Refinance Auto Loan – We’ve all heard of refinancing your mortgage with better interest rates and lower monthly payments, but did you know you can refinance your car loan?

Credit unions often offer the best interest rates to their members, and refinancing your car loan can help you lower your monthly costs by lowering your interest rate. When does refinancing make sense? There are several situations where refinancing can save you money now and over the life of your car loan.

Best Banks To Refinance Auto Loan

If you financed your car through the dealer, or were told it was the only way to take advantage of the extra incentives when you bought, you may have gotten a good discount but not the best price. Refinancing can be a huge cost saver for you. Contrary to what merchants may say, you don’t need to keep your funds with them when you take advantage of their promotions. You can refinance just 90 days after you buy your dealer-financed car.

Will Refinancing Start Your Auto Loan Over?

If interest rates have dropped significantly since you took out your original loan, refinancing may be a good financial option. The two examples below show how much borrowers A and B, who have $25,000 in auto loan balances, could save by refinancing their loan with Infinity Credit Union.

If your credit score has recently gone up, congratulations! Even if the current interest rate is similar to what you are paying on your existing car loan, your credit situation may improve and you may be able to get a lower interest rate. The better your credit score, the better interest rate you will get.

For example, someone with a credit score of 599 or lower may qualify for a high-interest auto loan when purchasing a new or used car for the first time. (Did you know that auto loan rates in Maine are as high as 17.99%?) But with Infinity’s best new market rate, this person can refinance at a better rate, say 6.34%*, which equates to a large amount savings (Note: Rates are subject to change and this is just an example. Apply online or contact us to see what you qualify for based on our current rates, your credit score and other factors.)

If inflation is causing you to lose money for almost everything and you plan to reduce your monthly expenses, refinancing your car loan may be a good option for you. Not only can a low-interest refinance help you achieve this, but you can also see if a longer-term refinance (for example, extending the loan term by 12 or more months) will result in a lower monthly payment. Keep in mind that even if your monthly payment is lower, longer-term refinancing will add to your total cost over the life of the loan.

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Although not a typical car loan service, you may want to buy the car instead of taking it to the dealership because the lease is up. In this case, shopping for a competitive interest rate and term can result in a lower monthly payment than the down payment on the lease and you will eventually own the vehicle.

Check your original loan penalties to see if there are any penalties for prepaying your car loan. (We are happy to inform you that Infinity Credit Union has no prepayment penalties.)

Refinancing your car loan makes more sense if you have two or more years to pay off your original loan. This is because auto loans are structured to pay more interest at the beginning of the loan, reducing the savings from refinancing.

Some lenders will not refinance loans on high mileage cars that are 4 years or older because the car’s value will continue to depreciate over the life of the loan, leaving you with more debt. more than the value of the car.

How To Refinance A Car Loan

Note: This is called “GAP” – when you owe more than you own the car. If you have an accident while in this situation, the insurance company will pay you what they think your car is worth, not what you owe on their car at the time, which could make you “cash out.” loaned “down” and your vehicle cannot be exchanged for a comparable or new vehicle. To avoid this situation in the future, ask your Infinity Member Specialist about GAP protection for your next car loan.

There are many reasons why financing or refinancing a car through a credit union can be good news for you.

• You’ll likely get a more competitive interest rate than through a car dealership or traditional bank. * Click here for the latest best market rates for Infinity CU.

• You will receive a more personalized service. With Infinity Credit Union, you’re not just a number, you’re a member of our community, a not-for-profit financial cooperative. And we’re here to help.

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• Your chances of getting a loan from a local credit union in Maine may be better than from a large national bank or lender. Infiniti is pleased to help people with less than perfect credit, because we understand that sometimes you need a second chance on the road to financial health.

If you want to know if refinancing your car loan makes sense for you based on your personal situation or the interest rate you qualify for, contact our team or apply online today. !

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Whether your goal is a lower interest rate or a lower monthly payment, a car refinance loan can help. Refinancing your car loan can make it easier to meet your other financial goals. However, this is not a one-size-fits-all move. Before you refinance your auto loan, here’s how to determine if it’s the right move for you and, if so, the steps to get the best deal.

If you can save on monthly payments and/or interest over the life of the loan, refinancing your car loan is a good idea. Keep in mind that if you decide to extend the term of your car finance, you may end up paying more in total interest. See how much you can save with our auto loan refinance calculator.

If none of these are what you’re looking for, options include debt consolidation, personal loans, home equity loans, or HELOCs.

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Lenders require certain documents to verify your identity, assess your creditworthiness and appraise your car. Here’s an overview of some of the information and documents a lender may require when applying for an auto refinance. We have divided them into categories to facilitate their organization.

Many lenders offer promotional interest rates as a way to lure people in, and it can be tempting to look cool, but avoid taking advantage of the first offer. Make sure you apply to a few lenders so you have a few options. You can check the current auto refinance rates before starting the process to see if you can save money on your refinance.

The Federal Trade Commission (FTC) advises consumers to get a quote. Applying to multiple lenders won’t hurt your credit if all applications are made within 14 days. Three credit bureaus — Experian, Equifax and TransUnion — offer this window specifically so consumers can comparison shop without penalty.

An easy way to review auto refinance deals is to focus on the total interest you’ll pay over the life of the car

How To Refinance An Auto Loan And Save Money

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