Calculator Auto Loan Refinance: How Much Are You able to Save?

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Perhaps you want to lower your monthly car loan payment. Perhaps your credit rating has improved. You might think that the dealer increased the interest rate on your vehicle when you purchased it. Refinancing your auto could save you money or lower your monthly car payment depending on how your finances have changed.

Key Information about Your Current Loan

You’ll need details about your current loan to be able to use the car refinance calculator. This information can be found on the latest car loan statement. For an approximate estimate of the results, try estimating the information if you have no other options.

In the section called Current Loan, you can enter information about your current vehicle loan. In the New Loan section, enter information about your loan. Click on the calculate button for your results.

All Current Car Loan Information You Will Require

Original loan sum: This refers to the total amount borrowed. If you have a down payment and you buy a new vehicle, it’s the total purchase price of the vehicle less the amount you borrowed.

Current interest rates: These are the rates you qualified for at the loan’s beginning. It is possible that you are paying more than you should if you have financed your car through a dealer. This is common for those who don’t receive preapproved loans or have below-average credit. They are not aware that there are better rates.

Length of the current loan: This number refers to how long it has been since you first started paying it. For new cars, the majority of people take out 60-month loans.

Balance on current loan: We hope you have been paying your monthly bills on time. If the loan has been outstanding for more than one year, it is likely that your current balance is lower than what was borrowed. If you are unsure of how much you owe, you can look at your last statement or call your lender to get the “payoff amount.”

The remaining months are on your current loan: This indicates the amount of time you have on your original loan. If you have not made regular, timely payments for at most six to 12 months, it is difficult to refinance at an improved rate. You can save money by refinancing if your loan is still in good standing.

Get the New Refinanced Car Loan Information

Refinanced Loan amount: In order to find out the amount you owe, consult your most recent statement. Or call your lender to ask for the “payoff balance.” It’s possible that you owe greater than what your car is worth. Most lenders will not refinance any amount higher than what a car’s books value.

The new term for your loan: The best thing about refinancing is the ability to adjust the length of the loan. Choose a shorter term if you want to pay your loan off faster. This will lower your interest. If you don’t mind paying more interest but want to lower your monthly vehicle payment, you can prolong the loan for up to six additional months. However, you should be cautious about extending your auto loans. You might end up owing much more than what the car is worth.

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