Reasons to Refinance Your Car Loan and Benefits of refinancing

Reasons to refinance your car loan and Benefits of refinancing

Reasons to refinance your car loanNow you may qualify for an interest rate that's lower than when you bought your car. Reasons to refinance your car loan If so, refinancing your car loan could mean savings to you.

Benefits of Refinancing Your Car auto Loan

There are 2 main reasons to consider refinancing your car loan:

Reduce your monthly payment
Reasons to refinance your car loan Refinancing may reduce your monthly payment through lowering your rate, extending your loan term or both. 

Reduce the overall amount of interest you pay
Refinancing to a lower interest rate may reduce the overall cost of your loan, potentially reducing the time it will take to pay off your loan.

Estimate your potential savings with our auto refinance calculator.

Auto refinance: things to consider

If you've determined that you're likely to save money by refinancing your loan, that's great. Here are some other considerations:

Loan conditions. The minimum Bank of America refinance car loan amount is $5,000 in all states except Minnesota and South Carolina, where it's $7,500. Also, your car should be no more than 10 years old and have less than 125,000 miles.
Credit check. When you apply, your credit history will be considered.
Applying is fast and easy

There's no fee to apply, and current Bank of America customers may qualify for an additional rate discount.

To make completing the refinance application easier, 
here's some information to have ready:

  • Personal information—Social Security number, driver's license number and co-applicant information (if applicable).

  • Vehicle and loan information—Year, make and model of your car; mileage; vehicle identification number (VIN); and current loan payoff amount.

A 5-year, fixed-rate loan for a $40,000 new car, with 20% down, requires a $32,000 loan. Based on a simple interest rate of 2.29%, this loan would have 60 monthly payments of $564.96 each and an annual percentage rate (APR) of 2.29%.

APR is the annual percentage rate. Rates quoted assume excellent borrower credit history. Your actual APR may vary based on your state of residence, approved loan amount, applicable discounts and your credit history. No loan documentation fee, but title and state fees may apply. 

Requests to cancel a loan will be processed as a loan payoff and require the outstanding loan balance to be paid in full including any accrued fees and interest.

If you choose to extend your remaining payments longer, the overall cost of your loan may be higher than without refinancing.

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