22. December 2017 10:56
Whether you can’t manage the monthly payments or your credit has improved, there are plenty of reasons to consider a refinance. While there are different motivations for replacing your current loan, it is important to understand the outcomes of an auto refinance. Here are some of the benefits that could help you save.
Lower your monthly payments
If you are struggling to make your monthly payments, you may consider a refinance. A refi can increase the term of your loan, giving you more time to pay off the note. This extension can help you better manage other monthly expenses by lowering your car payments.
Reduce the length of your loan
Some borrowers look to shorten their loan term to help pay off the vehicle faster. While this increases your monthly payment, it can decrease the overall interest you pay which saves you money down the line.
Decrease your interest rate
If your credit score has improved since you purchased your vehicle, it might be time to shop around for a new interest rate. A lower rate can reduce your total interest charge which can help you pay off the vehicle faster. A good rule of thumb is to seek rates in the low single digits.
Let the Travis Credit Union be your resource for buying or refinancing your vehicle. We offer great low rates for auto loan purchases or refinancing. We also offer quick loan processing, an easy online loan application, and other great options when financing your auto loan. Visit Livauto.com/autorefinance to learn how you can start saving today.