Refinancing Your Car Loan: What You Need to Know and How We Can Help
Every driver wants ways to lower their interest rates and pay off their loan, and Lomira Auto wants you to have reduced monthly payments, loan terms that work for you, and more. When you refinance your car loan, you can ease the strain on your budget and save more money every month!
What exactly is refinancing? How do you qualify? What are the benefits? Lomira Auto will proudly answer all these questions and showcase what we can do to help you refinance!
What is Refinancing?
You’ve probably heard that question often when financing a vehicle, but what does refinancing your car loan mean?
When you refinance your car, you replace your current loan with a fresh one with better terms and rates than your old one. What does that mean? If you think you’ll end up with two loans, don’t worry; you’ll only be left with one, which can offer lower rates, more favorable terms, and more. Refinancing is a common way buyers get more financial room or after they rebuild their credit to secure better rates!
How Do You Qualify for Refinancing?
Are you in need of refinancing? At Lomira Auto, our financial team knows the ins and outs of financing. They can examine your situation to determine whether you qualify for a refinance and explain your options.
Here are common factors that lenders look at when they qualify to refinance.
Credit Score: Your credit always plays a factor when applying for a loan and when you want to refinance. If you have a higher score, you can get better rates and options as with fantastic credit, your lender can see you as a lower risk when borrowing, and many offer a reduced rate compared to your current loan. Also, does refinancing a car loan hurt your credit? Sadly, yes, it will drop your score a few points, but with a small ding, you can quickly bounce back!
Payment History: Are you making all your payments on time every time? Your history of payments plays a factor in refinancing, as it shows lenders that you paid on time on your previous loan and that track record improves your choice of getting favorable terms and rates!
Employment and Income Stability: Lenders will want proof of employment and a record of a stable income to ensure you have enough to pay off your refinancing loan. Also, they may look at your debt-to-income ratio, and at Lomira Auto, our financial team can help navigate your paperwork to help you secure refinancing!
Why Should You Refinance?
Refinancing your car loan can open the door to fantastic perks while closing the door to lukewarm terms and high interest rates. Our financial staff knows how crucial it is to understand the refinancing process comprehensively, so here are a few benefits you can reap.
Lower Interest Rates: Every driver wants lower interest rates, and with refinancing, you can secure lower rates that lower the overall cost, so you don’t have to keep squeezing your monthly budget.
Reduced Monthly Payments: What does refinancing your car loan mean? You can achieve better financial stability and reduced interest. With lower monthly payments, you can keep more money in your pocket to save, invest, or cover other expenses!
Shorter Loan Duration: When you refinance, you can get a loan with a shorter term, speeding up the payment process and reducing the interest you have to pay!
Let Lomira Auto Help Refinance Your Car Loan!
With drivers searching for “Does refinancing a car loan hurt your credit?” “How to refinance your car?” Moreover, refinancing your car can be a fantastic way to save money, pay off debt quickly, and gain more financial flexibility, making refinancing a tremendous option for drivers!
Do you want to refinance your car loan? Visit Lomira Auto in Lomira and Neenah, WI, and have our friendly financial staff guide you through the process and showcase your options!
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- Wednesday9:00AM-6:00PM
- Thursday9:00AM-7:00PM
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