Resources on Car Refinancing

Car Refinancing

What is auto refinancing? How do I benefit by auto loan refinancing?

Auto refinancing is one of the best kept secrets around for saving you money, but most people never thought of refinancing their cars before. Car refinance is the same as home refinance. When refinancing car loans, you pay off your current car loan with a refinancing car loan from a different lender that has a lower APR. This is good for you because refinancing auto loans makes your monthly car loan payments much less, and your interest rate drops, which can allow you to pay off the balance of your car loan even quicker. Record numbers of homeowners refinanced in 2001 and 2002, and now many car owners are realizing you can save thousands by refinancing auto loans too. Car refinancing has become a very popular trend with dropping interest rates. It's like finding a wad of cash you didn't know you had in your clothes after doing the laundry. Use the money you save to pay off credit card debt, or accelerate your car loan payoff. You don't want to be paying off your Camry for the next 5 years do you?

Excerpt of "Auto Refinance, Car Loans, tips for refinancing autos, upside down loans, credit reports." ConsumerNet, Inc. 29 Jul 2006, 08:40 UTC. http://www.carbuyingtips.com/refinance.htm

Refinancing

Refinancing refers to applying for a secured loan intended to replace an existing loan secured by the same assets. The most common consumer refinancing is for a home mortgage.

Refinancing may be undertaken to reduce interest costs (by refinancing at a lower rate), to pay off other debts, to reduce one's periodic payment obligations (sometimes by taking a longer-term loan), to reduce risk (such as by refinancing from a variable-rate to a fixed-rate loan), and/or to liquidate some or all of the equity that has accumulated in real property during the tenure of ownership.

Certain types of loans contain penalty clauses triggered by an early payment of the loan, either in its entirety or a specified portion. Also, some refinanced loans, while having lower initial payments, may result in larger total interest costs over the life of the loan, or expose the borrower to greater risks than the existing loan. Calculating the up-front, ongoing, and potentially variable costs of refinancing is an important part of the decision on whether or not to refinance such as raising property tax after refinancing which varied by regions.

Excerpt of "Refinancing." Wikipedia, The Free Encyclopedia. 17 Jul 2006, 15:00 UTC. Wikimedia Foundation, Inc. 29 Jul 2006 http://en.wikipedia.org/w/index.php?title=Refinancing&oldid=64293579