There are certain situations where it makes more sense to refinance your auto loan than to continue paying down your current one. This process is usually quick and painless and often consists of minimal fees! It is important to remember that refinancing is not for everyone, but in some situations it certainly does make the most sense.
When interests rates drop more than a couple of points, refinancing may in fact slash my payments. Sometimes when you purchase a vehicle, you quite frequently can get a terrifyingly high interest rate. If you happen to notice that the interest rates have dropped since you purchased your new vehicle, you may be able to save some money by refinancing your loan. Even just a percentage point can make a very big difference in the life of a loan! Interest rates are also affected by your credit. When you pay off debt, you raise your credit score! When this happens, you may be able to get an even better interest rate for your vehicle! Even just a few months of on-time payments can lower your rates.
Sometimes, you end up with a high interest rate even after doing everything right. You have a high credit score, your credit history is sparkling, but for some reason you just couldn’t get a low interest rate when buying your dream car. When you are paying extra on an interest rate, that extra profit is going to the dealership. In this case, it would also make the most sense to refinance and save you some extra cash each month! Refinancing can save you as much as $1,400 every year for the remainder of your loan!
The easiest part of the process of refinancing is finding a lender! Ignition Financial is a provider who can help you in the process of refinancing your loan! They are experts at matching their customers with the best possible financing option for the customer! In a tight economy, it can save you money to refinance your auto loan. They also provide a loan calculator to help you determine a payment that will fit into your monthly budget! Talk to someone with Ignition Financial to help get all of your questions answered.