It is important in this low interest rate environment to have your mortgage at the lowest rate possible. Having said that, what about your automobile loans? There is a real opportunity to refinance your car in this low rate environment.
Lower that Payment
You can take this opportunity to improve cashflow if you are in a crunch because of Covid. Along with the lower interest rates which lower the payment you also can extend out the time period of the loan to decrease the payment even more. Just remember you will pay more interest by extending your note. I only give this tip for readers who are looking at every way possible to improve cash flow. Also the further you extend the note, the higher the interest rate goes.
Your Credit Score Improved
Was your credit score much lower when you financed that car note? If your credit score has dramatically improved you might be eligible for rock bottom rates.
Pay your car off faster
If you want to pay your car off faster try this! Refinance at a lower interest rate keep the term of the note as low as possible while making the same payment you were making with the higher interest rate.
You Financed your car through the Dealership
You don’t always get the best rates at a dealership. Even if you have great credit, you could be paying more than you should.
Use the Equity in your Car to Pay High Interest Rate Debt
If you want to pay down high interest credit card debt, you can borrow against your car using your car as collateral. Even the best credit card rates are as much as 5 times that of the lowest auto loans.
Who would I recommend?
The Pentagon Federal Credit Union would be my recommendation. I have been referring them as well as using them for over 20 years. There are many ways to join the credit union. Go to www.penfed.org.