What does the word “refinancing” mean? Typically, refinancing your loan means you are re-doing the loan with different terms – rate, length of loan, or monthly payment. Refinancing your auto loan could be a useful financial tool to help you manage your monthly budget!
There are several reasons why it might make sense for you to refinance your auto loan. Here are a few of them:
Lower your interest rate
One reason to refinance is to get a better interest rate. Perhaps you didn’t get a low rate when you initially financed your vehicle a few years ago. Fast forward to today. Rates are still relatively low and your credit may have improved to a point where you qualify for a better rate, which will lower your payment and save you money.
Lower your monthly payment
Consider extending your term to lower your monthly payment. This could free up valuable room in your budget and help you pay off higher interest debt faster.
Refinance and take cash out
Auto loans offer a lower interest rate than most unsecured loans or credit cards. If you have equity in your vehicle, refinancing with cash out could be a smart way to access funds in an emergency or pay off high interest rate debt.
Move your loan to your favorite financial institution
Your primary financial institution is your favorite for a reason, and it is so much easier to have all your accounts in one place!
To learn more about refinancing your auto loan, visit your nearest Travis branch or call us at (800) 877-8328 or apply online at traviscu.org/apply.
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