If you want to lower your monthly expenditures, there are different things you can do. Minor changes include taking coupons to the store and eating out less. Extreme measures involve moving into a smaller home or selling your car. Fortunately, you can save money each month more effectively than with a few minor changes, but you not take drastic measures, either. You may be eligible for car refinance loans to lower your monthly payments without getting rid of your car altogether. How do you know if such car refinancing options are right for you? This simple guide should help you decide.
To even be a candidate for car refinance loans, you need to fit a number of criteria. Restrictions include vehicle mileage, length still due on your loan, the type of car you are driving, how old it is, and who originally gave you your loan. If you fit the necessary qualifications, you will be excited to learn that you can begin saving money every month, totaling thousands of dollars over the lifetime of the loan. Everyone wants to save money, so if you fit within the necessary requirements, you should certainly look into the possibility of refinancing a car loan.
Often, mileage requirements rest at 75,000 miles, meaning the car you wish you refinance cannot have more miles on it than that. Many lenders also require you to have at least $7,500 left on your existing loan. If you know the current value of your car, this can help your cause, but having your car appraised is not required to qualify for car refinance loans. Along with mileage and loan length restrictions, lenders that will refinance your loan often require your car to be no older than six or seven years. You need to currently have a car loan out with a different financial institution to have a chance of qualifying.
Keep in mind that car refinance loans are based on what you have yet to pay off, not the actual value of the car. To help you determine if getting car refinance loans is worth it in your situation, you can use a car refinance calculator. These are available online and will help you see the breakdown of numbers more clearly. You should know that in some situations, the application process of getting your car loan refinanced can end up costing you more than simply staying put with what you are currently paying.
About the Author: Chris Goodman has been in the auto finance business for more than 20 years and has assisted thousands of consumers with their car loan needs. He is an expert on getting a car refinance loan and auto financing. Find more information at OpenRoadLending.com and see how easy it is to get a car loan.