When you find yourself in a bad credit situation, or you are in need to get a little extra money in your monthly budget, “should I refinance my car loan?” could be a question worth asking yourself.
There are many factors and details you should take into consideration to know whether auto refinancing works for you. At Jorge Auto Broker, we always work closely with our customers and advise you when it is a good opportunity to refinance the loan. Even though every case is different, there are some common scenarios and advantages to remember when refinancing:
refinancing might allow you to pay a lower interest rate in case the terms of the current loan don’t fit your credit situation very well.
Longer loan term
the length of the loan affects the credit? Yes, it does. If the loan term is lengthened, and there is a greater amount of time to pay back the loan amount, the monthly payments may be smaller and this could help you save some money every month. In this scenario though, you may end up paying more for the car in total.
Shorter loan term
when the car loan has a shorter duration, it may increase the monthly payment, but reduce the amount of total interest rate paid for the car.
If you are planning on refinancing your car loan, keep in mind you’ll need to have enough time in the loan to be able to request a refinance. It is not common to get the approval during the first 2 months unless you have excellent credit and payment history.
How to refinance my loan?
At Jorge Auto Broker we make the difference and help you to get the best rates. If you think you have a bad loan or you are in need to change the monthly payments CONTACT US and we will work with you to find exactly what you need.
Let us take care of your loan car, you just enjoy your ride!