What is refinancing?
If you’re making payments on a vehicle, and the only thing about it that you don’t like is the way the money pans out each month, you might have an option that is worth your time and attention: refinancing.
Refinancing is like taking out a brand new loan to replace the existing loan that you are using to slowly-but-surely buy your vehicle. Just like the original loan, it requires you to complete an application process (ideally, a fast, instantly submitted, quickly processed online form), and have a credit check by the lender.
Once approved to refinance, the loan that is being replaced is paid in full by the new lender and from that point, you are in a loan relationship with that new lender.
But why would you refinance?
There are a few reasons why a person might want to refinance and one or all may apply to the refinance loan you seek:
- Cash back – If the borrower needs cash for some reason, some refinance loans can offer cash back as part of the terms. This usually increases the principal, effectively giving you a loan on top of your existing loan, just so you can get that cash.
- A better interest rate – If the interest rate of the loan that the borrower currently has is what they consider to be too high, refinancing the loan may provide a lower interest rate.
- Lower payments – This one’s a no-brainer. Many people think of their financial picture in cyclical terms, and if the refinance offers you receive provide you with a lower rate, the resulting lower payments may be helpful.
- Wanting a better lender – Sometimes you just want to go with a lender that offers better customer service and flexibility, like being able to conduct more business over the Internet.
Full-spectrum lenders, like RoadLoans, offer vehicle refinancing to customers with all types of credit. So if any of the above reasons sound familiar, apply today, and see what RoadLoans can offer you.
* Disclaimer: These statements are informational suggestions only and should not be construed as legal, accounting or professional advice, nor are they intended as a substitute for legal or professional guidance. RoadLoans is not a credit counseling service and makes no representations about the responsible use of or restoration of consumer credit.Written by: Sonny Bynum