When it comes to the world of car refinance, there are several misconceptions about refinancing that you should know. Refinancing a home has been around for years but many consumers do not realize that you can refinance a car loan the very same way but in a fraction of the time. Car refinancing can save you a considerable amount of money over the life of the loan and reduce those big car payments that are haunting you.
The first misconception is that you have to have perfect credit in order to qualify for car refinancing. Well that is just not true. Even if your credit is less than perfect, you can still qualify to lower your monthly payments with a car refinance loan. It does not matter what type of credit history you have, getting a car refinance loan has never been easier.
The second misconception is that you have to “start over” with a loan when you choose to refinance. That too, is incorrect. With most lenders, you determine the term you want and from there, we will do the rest. Is your goal to reduce your monthly payments or simply reduce the amount of interest you pay on the car loan. The answer to that question will determine the path you should travel. You can keep the term the same as the remaining term left on your existing car loan or stretch it out and make a big impact on those payments… it’s up to you.
Finally, the biggest misconception of all is that by reducing your APR by one percent, your monthly payments are going to drop drastically. Well, reducing your current APR will make a difference in your monthly payments, however, extending term will make the biggest impact in your monthly payments.
Refinancing a car loan is an easy way to start reducing your monthly expenses and put more money in your pocket. Check out the useful tools available online at OpenRoad Lending where you can find car refinance payment calculators to determine just what your payments will be on your new loan and important information about your credit.
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 car refinance and auto loans. Find more information at online at OpenRoadLending.com and see how easy it is to get your next car loan.