What Is Auto Refinance?
When you refinance your auto loan, you are taking on a new loan to help you pay off the balance of your existing car loan. Depending on your financial situation, auto refinancing could lower your interest rate or monthly payment, or change the length of your loan. LoanCenter is the place to go when you want those high monthly auto loan payments reduced. We have helped many people lower their monthly payments by refinancing their current auto loan. We believe that your financial stability should be based on more than just a credit score, and we pride ourselves in helping all types of credit customers refinance their car loan. Interested in finding out if auto loan refinance is right for you?
Benefits of Refinancing Your Auto Loan
- You could get a better monthly payment. Interest rates can make a difference in how much your monthly payment is and the total interest you pay overtime. If your current loan’s interest rates are higher than rates you may qualify for, refinancing could reduce your monthly payment through lowering your interest rate.
- Refinancing might allow you to extend the duration of your loan term. Refinancing can help you reduce your monthly car payment in two ways. First, if you secure a lower interest rate, your monthly payment could be lower. Second, you may be able to extend the term of your loan.
- Refinancing may help you to reduce the overall amount of interest paid.
At LoanCenter, there are no prepayment penalties on your new loan and all credit types are welcomed to apply with proof of income!
Should I Refinance My Car Loan? Auto Refinance Eligibility
Most times, those who are thinking about refinancing a car loan are looking to lower their monthly payment or interest rate. Before making the decision whether to refinance your auto loan or not, consider these questions first:
- What is your lender’s current refinancing requirements?
- Does your current lender subject you to a prepayment penalty for paying off your loan early?
- Is the interest rate you qualify for today significantly lower than your current loan rate?
- Has your credit score changed since your original car loan?
- Are you currently in a financial bind (i.e. have you recently experienced a dip in income)?
- How much time is remaining to pay off your loan?
How Can I Refinance My Auto Loan with LoanCenter?
If you currently have an auto loan and feel your interest rate or monthly payment is through the roof, our Loan Officers may be able to help you. Our auto loan refinance process is simple. First, fill out the online pre-qualification form on the LoanCenter website. You must be at least 18 years of age or older to apply and must have a valid physical address. When you apply to pre-qualify for auto loan refinancing through LoanCenter, there is no impact to your credit score.
Once our Loan Officers have received your application, they will review it and let you know the loan terms based off of the information you have provided. Please keep in mind that sending in an application does not guarantee auto loan refinancing. The terms conveyed are subject to change once you have provided the required documents.
However, if you are approved for refinancing and are satisfied with your new loan offer, documents will need to be sent on your behalf to process your loan application and complete a final contract. After you’re approved, you’ll receive the funds to help pay off your old loan. That means you will no longer have to continue making payments to your old loan but instead work with LoanCenter to help you pay off your new one.
What’s Next?
Before making any financial decision, it’s important to first understand what auto loan refinancing is and apply for auto loan refinance pre-qualification to examine your options. At LoanCenter, you are our number one priority. Don’t wait any longer, refinancing your auto loan is the smart decision.
