In Upside Down Car Loan - I need advice
When interest rates drop, refinancing your car loan could save you thousands of dollars.
Say you bought a new car there two years ago and there were a few dings on your credit, you may have been charged 9 percent on a five-year loan for 23000 car Your payments are probably about 525 per month .
Now let's say that your credit has improved, and thus interest rates on car loans can now refinance the balance of your car loan at 3 percent and reduce your payments to about 445 per month for last three years that SA of 80 savings a month and in 2880 the term of the loan.
Other examples could be even more dramatic in some cases, an uninformed buyer of used cars could have been saddled with a car loan that has an interest of 18 percent by refinancing at a competitive rate, it could reduce his monthly payments in half.
Is there a downside to all this No. That's because, unlike mortgages at home, many auto loans don t charge prepayment penalties or fees to establish the loan and consumers can complete the online application process in about 15 minutes.
Car owners who are considering refinancing their auto loans should first find their purchasing contracts and check their term, the loan term, the balance how much they still need and the current interest rate This is particularly easy for car owners who have their online accounts.
Many lenders offer refinancing auto Start by checking the refinancing rate offered by your own bank or credit Compare your results with the rates indicated for online lenders and other banks on a site like.
On type the name of your state and the nearest city, and the site displays a list of lenders and their rates sure to review the loan term, as different words have different rates Moreover, know that many of these lenders perform a credit check when you apply, which could have a minor impact on your credit score.
Remember, that interest rates fall, auto loan rates follow Why throw that money to pay unnecessary interest Visit the auto loan calculator and see how to get a new loan at a lower interest rate could save you.
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