Love Your Ride, Not Your Payment? Consider Refinancing to a Lower Rate

14 April 2021
Category: News
14 April 2021, Comments: Comments Off on Love Your Ride, Not Your Payment? Consider Refinancing to a Lower Rate

Are you currently making payments on an auto loan? If so, you may want to look into refinancing! Refinancing your auto loan means replacing your existing loan with a new one from a different lender. It’s an easy way to lower your monthly payment!

Interest rates have dropped

This is the most common reason to refinance. Interest rates change over time because of market and economic factors. When auto loan rates drop, that’s when you should consider refinancing. Lower rates mean lower monthly payments, which frees up additional cash each month so managing your cash flow becomes an easier task.

Improve your credit score

If you’ve been working hard to build credit since you first purchased your vehicle, you’ll likely have a higher credit score and be eligible for a better interest rate if you refinance.

Shorten your loan term

If you recently received a raise or have more cash flow, you can evaluate your loan term and see if a shorter term works with your budget. A shorter term can help you save money in interest in the long run!

Lower your payments

By extending the term of your loan, refinancing can help reduce your monthly payment. This strategy may be best for people looking to reduce expenses quickly.

How Do I Refinance My Car Loan?

Once you’ve made the decision to refinance, get pre-approved at Lowland Credit Union. Here are our current auto rates so you can compare to your existing loan rate. And you can use our auto calculators to check different scenarios to see which makes the most sense for you.

Gather all necessary information before you apply, including:

  • Current loan balance, interest rate and remaining balance
  • Valid driver’s license
  • VIN and title
  • Proof of employment
  • Proof of insurance

We’re ready to help with your finance. Start your application process today!

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