Posts Tagged ‘Upside Down’

April 20, 2010 at 11:57 pm

How to Refinance An Upside Down Car Loan



An estimated 30% of new car owners have upside down car loans – loans where one owes more than what the car is valued at. However, even used car owners can have this problem. While refinancing won’t solve all your problems, it can help make your payments more manageable.

Start by checking out your current loan rates and terms. Then you can compare car loan lenders to see what deals you can find. After that, it is just a matter of picking terms and doing the paperwork.

Check Your Current Loan Rates And Terms

It is a good idea to look at your current car’s loan rates and terms to see what you have. This will give you a target rate that you want to fall under. Also, check to see if there are any early payment fees.

Besides looking at your rates, figure how long you have left on your auto loan. You can select a new loan with approximately the same pay off date or extend the terms for a lower monthly payment.

Compare Car Loan Lenders

Finding the best refinance offer is a matter of searching for the right lender. Luckily, you can use the internet to save yourself some time. Using a broker site will let you collect rate quotes in minutes. Or you can go to individual financing company sites and look at their rates.

Either way, you want to compare their APR. That way you won’t get caught paying high fees for a low rate.

Pick Better Terms

While you are searching for rates, also plan on picking better loan terms for your budget. Selecting a loan for the same period you have left on your old loan will keep you on track for the pay off date. It will also help you get out of the upside down loan situation sooner.

However, a longer loan of five to seven years will lower your monthly payments immediately. The tradeoff is that your interest costs will be higher.

No matter what type of loan terms you choose, don’t hesitate to start your loan paperwork once you have selected the right lender. Quotes aren’t locked in until you start signing paperwork. The sooner you refinance, the more money you can start saving on your monthly payment.

By: Carrie Reeder

No Comments

December 28, 2009 at 8:11 pm

Benefits to Refinance Car Loans

 



Benefits to Refinance Car Loans

Car loans can be refinanced for a variety of reasons. Mostly though auto loans are refinanced to save money on the monthly car payments. When you refinance your car loan you can get a better interest rate and you can also lengthen or shorten the term of your loan.

Even if your credit isn’t perfect it’s still easy to refinance car loans online. Refinancing your car loan can help you in several ways. Finding an online auto refinance is so easy thanks to the number of lenders trying to get your business. The downside is that you will be required to meet some criteria to refinance car loans.

If you bought a car when you had bad credit or even if you had lovely credit and your credit has since improved you can get a better interest rate by refinancing the car loan now. A better credit score justifies a better credit rate. A reduction of several percent can save you significantly on your monthly auto loan payments.

Requirements to Refinance Car Loans

Now the bad news. You will have some requirements to meet in order to refinance your car loan. First of all the cars value must be greater than the amount you currently owe on the car loan. If you owe over the car is worth this is called an upside down loan and you won’t be able to refinance the auto loan.

How Does the Car Refinancing method Work?

It’s simple to refinance car loans. First you’ll require to get the remaining loan balance from your current lender. Then, go online and find and auto refinance company and complete their online application. You’ll be asked about the make and model of your car, the model year, any options like power brakes, CD players, alarm systems, etc. You may also be required to supply the VIN on the application. The really nice thing is that online auto refinance approvals are instant.

If you can, reduce the amount you still owe and then try refinancing the car loan. This will mean either increasing your monthly payments temporarily or making a lump sum payment. Other requirements you’ll require are that the car must be less than 5 years old and the total amount still owed on the car loan must be at least $7500 although you may find some online lenders who are willing to drop this requirement.

Selecting an Auto Loan Refinance Lender

While selecting the right refinancing lender is important, it’s an easy part of the method. This is because there are so many lenders online competing for your business that you can get several quotes from different lenders in a short period of time and compare the offers. Then simply accept the best one. Online lenders mean that when you refinance car loans you can now pick and pick the loan that will save you the most money.



By: Auto Source Financial

No Comments

November 3, 2009 at 8:48 am

The Right Way to Refinance Car Loans

Even if your credit isn’t perfect it’s still easy to refinance car loans online. Refinancing your car loan can help you in several ways. Plus, finding an online auto refinancer is so easy thanks to the number of lenders trying to get your business. The downside is that you will need to meet some criteria to refinance car loans.

Benefits to Refinance Car Loans

Car loans can be refinanced for a variety of reasons. Mostly though auto loans are refinanced to save money on the monthly car payments. When you refinance your car loan you can get a better interest rate and you can also lengthen or shorten the term of your loan.

If you bought a car when you had bad credit or even if you had good credit and your credit has since improved you can get a better interest rate by refinancing the car loan now. A better credit score justifies a better credit rate. A reduction of several percent can save you significantly on your monthly auto loan payments.

Requirements to Refinance Car Loans

Now the bad news. You will have some requirements to meet in order to refinance your car loan. First of all the cars value must be greater than the the amount you currently owe on the car loan. If you owe more than the car is worth this is called an upside down loan and you won’t be able to refinance the auto loan.

If you can, reduce the amount you still owe and then try refinancing the car loan. This will mean either increasing your monthly payments temporarily or making a lump sum payment. Two other requirements you’ll need are that the car must be less than 5 years old and the total amount still owed on the car loan must be at least $7500 although you may find some online lenders who are willing to drop this requirement.

How Does the Car Refinancing Process Work?

It’s simple to refinance car loans. First you’ll need to get the remaining loan balance from your current lender. Then, go online and find and auto refinance company and complete their online application. You’ll be asked about the make and model of your car, the model year, any options like power brakes, CD players, alarm systems, etc. You may also be required to supply the VIN on the application. The really nice thing is that online auto refinance approvals are instant.

Selecting an Auto Loan Refinance Lender

While selecting the right refinancing lender is important, it is an easy part of the process. This is because there are so many lenders online competing for your business that you can get several quotes from different lenders in a short period of time and compare the offers. Then simply accept the best one. Online lenders mean that when you refinance car loans you can now pick and choose the loan that will save you the most money.



By: Steven Walters

No Comments

Back to top

<< Previous Entries