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New Year, New Refinancing Options
Getting your finances in order for the New Year can be stressful. Once the excitement of the holiday season subsides and along with the spending sprees that often go along with it, you may find yourself wanting to pick back up on a new financial start. However, you can easily find yourself discouraged and overextended after spending all of that money. But the good news is that there are steps you can take to prevent or cure a financial melt down in the New Year. One of the most significant steps you can take to get back on track and stay there is refinancing your auto loan. Here is a simple breakdown of how the process works:
Much like when you refinance a home mortgage, refinancing your auto loan pays off your existing vehicle loan. But it's much faster and simpler to refinance the loan on your car or truck. During the process, your new lender pays off your old loan and the title to your vehicle is transferred to your new lender. Always be selective with your lenders, of course depending on who will take you up. You'll want to stay organized and have all of your documents, contact information and website logins handy when getting ready to refinance. Keeping things in order will pay off in the long run, and you won't have to spend hours looking for things like account numbers in the process.
Decrease Your Monthly Payment
Refinancing your auto loan can lower your interest rate, decrease your monthly payment by changing your terms, or both. Most often, people refinance when interest rates are low to reduce the amount of interest they're responsible to pay. You can also lower your monthly payments by extending the duration of your auto loan to break your payments up over a longer time frame.
You could potentially enjoy significant savings through auto refinance. Exactly how much you'll save depends on the remaining balance of your current loan, the difference between your old and the new interest rates, and the terms of your new loan. Even if it's just a small amount that you saved, that's extra savings coming from a simple step process that just about anyone can do.
The money you've saved could be used be used for whatever you'd like. It would seem to make sense to put the majority of it back into taking care of your car, accessories, upgrades, that new paint job you've been considering or even extra gas money. Always be sure to get regular oil changes, servicing, wheel alignment. You want to treat your automobile as if it were a newborn child. Show it love, and it will treat you
nicely as well! Regardless, whatever you decide to spend your new extra savings on, you will be happy you refinanced.
No matter what motivates you to do it, refinancing your vehicle loan is an option that's well worth your time and effort. A little extra research now could blossom into huge savings for the rest of this year, and for the remainder of your auto loan.