I’m a money expert – my four tips on how to refinance your car the right way... - The US Sun

DRIVERS can find their way into car loans that aren’t advantageous—but finance worker Seth Godwin posted a TikTok where he shows you how to refinance your car the right way.
A driver may refinance their car loan when they buy a vehicle and experience high-interest rates, lengthy terms, and poor bank relationships.
Godwin states: “Most lenders allow you to refinance your loan without penalties, even before you make the first payment.”
Godwin says lenders keep this under wraps to maintain your business.
Godwin lists your first auto refinancing step as outlining how much your car is worth.
Determining your vehicle’s worth helps you know whether or not you owe more money on your car loan than the car is worth.
Owing more money on your car than it’s worth is known as being upside-down on a car loan.
Godwin says that most lenders will finance between 90-110% of a car’s value, with very few going as high as 125%.
Godwin’s second instruction on TikTok is to obtain your current lender’s 14-21 day pay off.
Godwin notes that auto loans accrue daily interest known as a per diem, and your new lender will require a future dated payoff to ensure that when they send the payoff, the balance is covered.
A loan balance that isn’t fully paid off with a previous lender will halt the title release for the new lender to add to their lien, which is more of a headache than it’s worth.
Step three is to get approved by a lender and shop that rate for comparison.
Godwin says that most banks and credit unions have refinancing programs so that you may find a better deal elsewhere.
Godwin’s last bonus tip is not to extend your loan term.
Extending your loan term might give you a lower monthly payment but will ultimately defeat the money-saving purpose of refinancing unless the new interest rate is much lower.
Honda Ridgeline recall involves more than 100,000 trucks
I’m a money expert – how to lower your monthly car payment by $148
American Pickers' Mike Wolfe buys 1939 Ford Deluxe $56K & begins restorations
Tesla's Elon Musk might be worried after Polestar reveals EV's power figure
© 2020 THE SUN, US, INC. ALL RIGHTS RESERVED | TERMS OF USE | PRIVACY | YOUR AD CHOICES | SITEMAP

source

Leave a Reply

Your email address will not be published.