Tips To Refinance A Car Loan
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Posted On :
Dec-12-2009
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Article Word Count :
533
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There are several reasons why you may like to refinance a car loan. For example, because of the increased competition in the market, other companies might be offering a much lower interest rates now. Refinancing gives you an opportunity to take advantage of the same.
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There are several reasons why you may like to refinance a car loan. For example, because of the increased competition in the market, other companies might be offering a much lower interest rates now. Refinancing gives you an opportunity to take advantage of the same. There can be other scenarios as well. You might be looking out for a way to lower your monthly payments – maybe because your overall monthly expenses have increased or possibly because the overall monthly income has unfortunately decreased. Likewise, you may also be considering opting for refinance because now your credit score has improved and you can easily qualify for a lower rate – regardless of whether the rates have dropped in the market or not. Refinancing may also be a good option for those who have leased a vehicle and now want to keep it – though it is not exactly that conventional refinance but the process is very much the same. So, if any of these situations is applicable in your case, you probably are looking out for a way to refinance a car loan. The good news is that the process is fast, easy, and completely hassle-free. Here’s how you have to go about it.
The Terms And Conditions Of Your Current Loan
Get your current loan documents and read all the terms and conditions thoroughly. Does it include a prepayment penalty? If yes, how much? You will have to take this amount into your calculations to see if refinancing can still be a good idea. Most companies these days do not charge penalty for prepayment, but there are still a few lenders who do.
Loan Rates
The next thing that you have to do is to research the current rates in the market. You can do this online right from the comfort and convenience of your home - it will save a great deal of time for you. You can start by visiting the website your current bank. Is your bank now offering a much lower rate for the new applicants? In fact, because of the cutthroat competition in this field, many banks these days are offering special discounts for their existing and new customers. If the rates are lower, you may like to refinance a car loan with your bank only.
Hidden Costs
Before you sign the refinancing documents, it is very important for you to make sure that there are no hidden costs. Enquire about loan and title fees and any other fee that may be applicable. Read the terms and conditions for refinancing carefully. No matter how small these hidden costs look like, they can add up and eat up your savings. So, make sure that your potential lenders are explicit about those extra fees.
The next step is to request free quotes from at least 3-4 lenders. Compare their rates and terms. A thorough comparison will help you make an informed decision whether you should refinance a car loan or not. Remember to include everything in your calculation, such as the new down payment, the extra fees, prepayment penalty, and other such things.
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Article Source :
http://www.articleseen.com/Article_Tips To Refinance A Car Loan_6895.aspx
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Author Resource :
When you plan to refinance car loan, you would do wise to research the current loan rates, and figure out if there are any hidden costs involved. To know more about the refinancing options available, you may visit the Finance Enquiry website.
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Keywords :
Refinance Car Loans, Car Loans, Auto Loans, Finance Enquiry,
Category :
Finance
:
Loans
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