Your monthly car loan payment can be lowered by refinancing, and you can save thousands of dollars over time. You may be able to qualify for a rate that makes you refinance worthwhile with a good credit score and a history of on-time payments of 6 to 12 months.
Save money when you use the car loan refinancing calculator.
You can calculate how much money you’ll save through a refinance by using Bankrate’s car refinance calculator. For use, enter your monthly payment, remaining balance, interest rate, and the remaining term of your current loan.
If you’re concerned that your estimated savings or monthly payment will be greater than those of your current loan, then try adjusting the interest rate and term. Getting prequalified is the next step once you know what interest rate and term will make a refinance worthwhile for you.
Refinance for what reason?
Perhaps you’re interested in lowering your monthly car payments. You might have improved your credit score. Possibly you think your interest rate was marked up by the dealer when you bought your car. Refinancing may save you money on interest or reduce your monthly payment, depending on the terms of your original loan or your financial situation.
Can a new auto loan lower my monthly payment?
With interest rates at record low levels, it might make sense for you to explore refinancing your car loan. It may also be possible to reduce your monthly loan payments by adjusting the term of your existing loan. To determine if you should refinance your auto loan, use the car loan refinancing calculator.
Refinancing your car has some advantages.
● Rates of interest can help you decide whether to make monthly payments and how much interest you end up paying. Consider refinancing if your loan’s interest rate is higher than what you may qualify for. You can save money by lowering your payment by a few percentage points in the long run.
● There are a couple of ways that refinancing can lower your monthly car payment. One way is by lowering your interest rate. A longer loan term may also be possible. Your monthly payment will be lower if the term is extended from 48 to 60 months. It’s crucial to keep in mind, however, that if you extend the term of your loan, you may have to pay back more in total. You can get all these insights using a car loan refinancing calculator.
