Charlotte County Florida Weekly

Refinancing a car loan can free up your budget

 

 

You’ve heard experts talk about refinancing. To be good with money is to be someone who knows how to use it wisely. Money moguls allow their accounts to work for them and debt is not an issue. Most of all, a high APR doesn’t even cross their vocabulary. But, what if you’re not an expert or a mogul? What if you’re an everyday person and you just want more out of your monthly budget? You don’t have the time (or interest) for games, and you think refinancing a car loan should be a straightforward process. How is all of this going to give you cash leftover?

First and foremost, having a high annual percentage rate will eat up your budget. At the beginning of a loan cycle, payments go primarily toward interest, with very little directed at lowering the principal. That’s because lenders want to ensure they collect their dues first. Refinancing a car loan allows borrowers to even out the playing field.

When you refinance to a lower APR, not only do your payments become smaller, but your interest charges do, too. You’re able to jump away from the continuous cycle of high-interest loan payments.

 

 

Why do credit unions offer to refinance? Credit unions work as nonprofit institutions, which is why their rates are typically lower. They offer to refinance because they want your business, plain and simple. Providing helpful services, like loan refinancing, allows credit unions to offer other things such as banking and wealth management. They gain you as a customer, and by refinancing through them, you receive the benefit of their operational model.

Here are some questions to ask before refinancing:

¦ How will refinancing affect my credit score?

¦ Is there a charge for refinancing my car loan?

¦ Will my vehicle still have GAP protection?

¦ How many months is my new loan for?

¦ Will my new loan be more than what my car is currently worth?

You don’t have to be an expert to know that refinancing a car loan to a lower rate is a good thing. After considering all of the points above, you’re ready for your next move. Lower your payments and enjoy the cash you have leftover. Your wallet and your budget will thank you.

Visit www.refiandride.com for more information on refinancing your auto loan with Achieva Credit Union. Insured by the NCUA. ¦

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