What Is Auto Loan Refinancing?
Deciding on the terms of your auto loan can be a stressful process, but it does not mean you are locked into those terms for life. When you refinance your auto loan you change the rules in your favor. If you feel your interest rate is too high or your monthly payments are too much to handle you can refinance your auto loan. Refinancing your auto loan means you take out another loan to pay off your existing loan. The new lender pays off your old loan while you pay the new lender a monthly payment. Refinancing your existing loan can save you money because it can lower your interest rate and monthly payments. Does this sound to good to be true? The lender benefits from this too. The length of your loan will be extended, so you will end up paying more over time. Factor in that you will be paying less a month then you currently are and it is mostly seen as a worthwhile trade off. It is good to refinance your auto loan if your credit score has improved since you first applied for your origin
