Refinance Car Loan to Cut Interest Payment Fox Business
Dear Driving for Dollars,
I bought a car six months ago and I just realized that I am paying more toward the interest than I am toward the principal. Why is this? Is there anything I can do to change it?
-- Abel
Dear Abel,
You must have a high interest rate on a smaller car loan. For example, if you have a $25,000 auto loan with a 15% interest rate for five years, you would be paying more in interest than toward your principal in the beginning of your loan period.
As you progress in your loan, the amount paid in interest decreases, while the amount going toward your principal increases. To change your situation, you could look at refinancing your car loan at a lower interest rate, or start paying extra toward your principal each month if that's allowed on your car loan.
To see exactly what's happening in your situation, use Bankrate's auto loan amortization schedule calculator; enter in your loan amount, the term, the interest rate and the start date, then click "Show/Recalculate Amortization Table" to see the breakdown between principal and interest in each payment. It's quite likely that more of your payment will be allocated to the principal soon.
Refinance Help. Fill this form and get help!
Refinance Car Loan.mp4
With interest rates at historic lows, now is the time to take advantage of a refinance car loan. The process is simple to complete and you can ...
Can i cancel a car refinance loan i made three days ago through Wells Fargo in California?
I refinanced my car loan through wells fargo and i don't like the interest rate that they gave me so i want to cancel the loan, want to keep my original loan. I have already tried to call my original loan company and tell them to return the check, but they say there is nothing they can do. I tried to get Wells Fargo to stop payment on the check but they said i had to go to the branch. Are there any other things i can do? Maybe write a letter or something?
No you can't. But you might be able to refinance again.
Would it be good to refinance car loan when the current loan is reported as Included in Bankruptcy wrongly?
I've got a car loan that was kept through my bankruptcy and I've been paying on for approx two years since now and just realized they reported it as part of my bankruptcy and they will not change(included is said because it was written about in the papers even though it was reaffirmed). I'm trying to now fix my credit up some and would like to know if it will help or even effect at all my credit to refinance it now?
I went through this same thing back in 2001 and Ford was not reporting my account, all it took was a simple phone call and they updated the information on the bureaus.
If your lender will not do this, you will have to have proof that you have been making the payments to be approved for a refinance loan.
If you do get refinanced, it will help your credit as long as your lender reports to the credit bureaus.
======================================
If this is not your first time buying a car, then you may be well aware of the various steps that you have to take as well as the pitfalls to avoid. If however, this is your first time around, you may not be aware of this. So here are some guidelines that will help make your car purchase a smooth one:
Know exactly what type of car you want and how much you are willing to spend on it. Use the power of the Internet to do your research. Do not start off with a blank cheque. Always bear in mind that a car loan generally requires a medium to long term financial commitment. You should therefore look at this expenditure with a very futuristic view. You should also factor in as well, the possibility of unexpected expenses such as accident, illness etc.
Always know what your credit score is in advance. This will ultimately determine if lenders will be willing to lend you and how much. Very recently, I met someone who took it for granted that all was well with their credit score. When he applied for the loan, he had serious problems. There were transactions on his credit report that he knew nothing about, and these damaged his credit rating. It turned out that he was a victim of identity theft and was completely unaware of it. So even before approaching any finance house for a loan, please get into the habit of checking your credit score on a regular basis. It can save you a lot of stress.
Shop around for the lowest rate car loan you can find. Car loan repayments are calculated using an amortization schedule. You will be given a fixed monthly payment to make, part of which will be paid towards liquidating your outstanding interest and the rest towards your principal. As the age of the loan increases, the interest accrued each month will decrease resulting in more of your payment going towards your principle. But the point here is that a seemingly small change in the interest rate can significantly impact on the total amount you pay over the term of the loan, particularly for a medium to large principle burrowed.
Most dealers will also offer financing. Always remember that they offer financing on behalf of some financial institution and will get a cut for each loan they get. You will have to pay for that cut. It will be included in the total amount you will pay over the duration of the loan. Even though it may appear to be more convenient and saves you time, it will definitely cost you more. It is therefore better to get financing for your car loan directly from a bank or financial institution.
If you are looking at refinancing an existing loan, first ensure that everything is in order – particularly if you are seeking to refinance after filing for bankruptcy. I must repeat – keep your eye on your credit report.
Be truthful in filling out the application for the car loan. Do not try to burrow more that you can comfortably afford. This will backfire on you and could negatively impact on your credit score. If the car you want is more than your credit rate allows, then settle for less while you build on your credit score and you savings.
Best Regards
http://www.smartecredit.com/online_car_loan_application.php
Is it possible to refinance a car loan with one's current auto loan bank or institution?
I currently have an auto loan with Bank of America. I am paying 9.7% APR. I'm considering refinancing just to get my interest rate lower.
In fall 05, I started it w/ a loan balance of ~$27K. In 1.5yrs, I've paid down the loan to a little under $15K. Currently the car has a trade-in value of ~$19,500 and a retail resale value of ~$23K(I looked this up on Kelly Blue Book's website). So I know that I'm not upside-down on my loan.
Do I have a good chance of refinancing? My credit is solid, but the only thing that I'm afraid might hinder me is the credit card balances that I currently have(although I've been paying them on time).
More importantly--Is there a chance Bank of America might be able to refinance my car loan for a lower rate? If they do this, is it possible for the loan acct.# to stay the same?(since it's within the same bank) Do banks sometimes refinance car loans that they already manage? And if I tried to refi with Bank of America, would it create a hard inquiry?
I asked about it at my credit union and I'd say it's a no-no. The credit union said they only determine int. rates based on what tier my credit score falls in, so my good loan-to-value ratio, length of loan, etc won't help me. They also said that I'd only qualify for a "used car" loan, and the rates are higher for those. But I will definitely try Bank of America...except I called 2X today and got disconnected each time after waiting a while. >:( Anyone have any specific car loan experience dealing with Bank of America?
Yes it is possible. Since you have paid the loan down so much your loan to value has changed greatly. This is one of the main things that lenders base rate on.
You should have no problem refinancing with your own bank, if you do? Try a credit union, they will always beat a bank on rate anyway.
And yes it will be a hard inquire.
Best place to refinance car loan?
I want to refinance my car loan. Who is the best lender, online or regular?
Your bank or credit union should offer better rates than you can find anywhere else.
You'll want to check these guys out....99% approval they say.
http://www.123thebest.info/go.php?link=auto
Take care.
How can I pay off my car loan quicker? Refinance an option???
I currently owe $26,000.00 on my car loan, with 8.9% interest. Would it be worth the refinance charge if it brought the interest down to 4.8% (the refinance charge would be approximately $2,000)? I'm on a six year loan. Is there any way to pay it off quicker?
It depends on how many months are left on the loan. If you just took the loan out, then yes it would be a good idea to refinance the loan at 4.8% rate if that is the best you can do. It is possible that you can pay off your loan by over paying your monthly payment (assuming there are not penalities for doing so) but, check you loan agreement first.
Based on what you told me you are paying about $416/month for your car loan over a six year loan at 8.9% for a original loan amount of $26,000.
Your savings per month would be $51 dollars and over a six year period at 4.8% discount rate that would have a present value of $3,188, so paying $2000 to buy down the loan rate is an ok idea but, why did you sign up for a 9.9% interest rate? That is a sky high rate. What is your credit score? I think you can get a better deal at a credit union.
how much will my interest rate go down after i refinance my car loan?
i bought a car 2 months ago and the dealer told me that i can refinance my loan after 7 months. my current interest rate is 12, what will it be after i refinance? please help!!! i live in NY if that helps
You don't really give us much information about your credit so it's hard to say. It's going to depend on 4 important factors
1. equity in your car
2. credit
3. age of car
4. miles on car
Assuming it's a some what new car and low miles, and this is your first car and your just have limited credit.
You might be able to cut your rate in half. But, I don't think we have enough information to say.
I've had good luck here...
http://auto.deal4-you.com
Best wishes
There is NO LIMIT to the amount of time between initial loan and refinance. It can be a few days to a few years. As long as the loan shows on your Credit Report and we can get the payoff, you're good to refinance.
Send us an app and we can help out as much as possible. We'll get our best lenders to help you out.
How fast should i refinance my car loan?
Car loan is 17000 dollars apr is 17 %.
Dealer told me that i can refinance in 4-6 months, but i think he lied to me. Bank told me that i can refinance only once.
So 4 months passed.
SHould i try to refinance it or wait at least 12 months???
Thank you.
At that apr and assuming the 17000 was the value of the car, you will be "upside-down" for 2-3 years, i.e., your car will be worth less than the loan balance. Make double--even triple--payments as you can, or you will need thousands to refinance.
Can i refinance my car loan to pay off credit card debt?
I would like to refinance my car loan to pay off about $3500.00 in credit card debt. I currently owe around $3200.00 on my current car loan. If I go to my credit union will they be receptive to refinancing, or is it not possible to do this?
I agree. What type of car do you have? Look it up on kbb.com and see how much the trade-in value is. Take that, and subract out the amount you still have to pay on the car. That's how much you can get from the new loan. But really the focus of refinancing is going to be reducing your money payment or interest rate. If you can do both of those, then go for it.
Once you refinance the amount you OWE on the car, take the money saved and apply it directly to the high interest cards. Pay the minimum on the car until the high interest car dis paid off.
Always pay off high interest things first with any extra money you get.
So overall is it possible? Yes, but it depends on your financial situation, what kind of deal you can get, and what value your car still holds.
It isn't a good idea to shift debt to another loan. People tend to run the credit cards back up. They are stuck with credit card payments and that bigger loan.
Set up a budget and eliminate all the extras. Take every penny you can squeeze out of that budget and throw it on the highest interest rate credit card, while making minimum payments on the rest. When the highest rate card is paid in full, move to the next til they are all paid in full.
When you get those cards paid off, only charge what you can afford to pay in full every month. Save all that interest and stay out of debt.
http://best-loans.awardspace.com/refinance-car-loan-bad-credit.htm
If you think your lender is charging a higher interest rate on your car loans then you can look at the refinance car loans option. With the help of a refinance car loan, you can avail multiple benefits. Firstly, you may reduce-->your monthly costs. Secondly, you may avail a competitive interest rate. Thirdly, you could be getting a flexible repayment period. Overall, you will be managing your loan a lot better.
Where is the best place to refinance my car loan?
When I first got my car in March 2006 my interest rate was 17.9% I refinance in September 2006 with E-loan for a rate of 11.04% we recently bought a home and our finally establishing some credit. So I think it's time to refinance again. Does anyone recommend a great place to get a great rate?
Why not use E-loan again?
I've had good luck here...
http://auto.deal4-you.com
Have a nice day.
How can i refinance my car loan with a different co-signer?
My cosigner on my car loan needs to be removed. Can i refinance with a different co-signer?
Put simply? Yes, you can if you are in a state that allows the addition and removal of co-signers during refinancing.
car loan refinance - News
|
Get Your Auto Financing in minutes - BigNews.biz (press release) Get Your Auto Financing in minutes One can refinance their auto loan with simple and fast process of an online auto loan company where one can easily refinance their auto loan or car loan. |
|
MonitorBankRates.com Launches Comparison Shopping for Auto Loans ... - PR Web (press release) MonitorBankRates.com Launches Comparison Shopping for Auto Loans Consumers currently can be matched with providers for home equity loans, new home purchase loans, refinance loans, mobile home loans and car loans. |
|
Should You Declare Bankruptcy? - Alibaba News Channel Should You Declare Bankruptcy? (The car would be sold at public auction.) Bad move. Because Candy's mother co-signed her car loan, mom would be responsible for paying the full balance on |
|
Refinance Auto Loan for good Credit or Bad Credit - BigNews.biz (press release) Refinance Auto Loan for good Credit or Bad Credit And suppose you decide to refinance Auto Loan or Car Loan. so, how would you go about doing it to actually improve auto loan or car loan situation? |
Investors Look to Obama Mortgage Plan - Forbes
Boston GlobeInvestors Look to Obama Mortgage Plan Government-controlled Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ) could be enlisted to refinance or subsidize loans White House closes in on housing plan
|