With interest rates remaining so low, an auto loan refinance may be something you have considered. Doing so could save hundreds of dollars each year and sometimes thousands over the life of the loan. Unlike refinancing your mortgage, refinancing your vehicle loan is usually quick, easy and painless—and if you refinance with Century Federal there are no application or processing fees!
But refinancing is not for everyone. It makes sense if you find yourself in one or more of these situations:
- Interest rates have dropped - If interest rates have dropped more than a couple of points since purchasing your vehicle, you could save big.
- Your credit score has improved - If you had negatives on your credit report or no credit history when you bought your car, but your credit has since improved, you may now qualify for a lower interest rate.
- You didn’t get your best rate when you purchased the vehicle- Dealer-sourced vehicle loans commonly carry a higher rate. The extra money is a profit source to the dealer.
- Your personal financial landscape has deteriorated - If you have had a financial setback and need to reduce your payments, refinancing could be a solution by increasing the loan term, thereby lowering the monthly payment.
The first step to refinancing is to call your current lender and request a loan payoff figure. This is the amount of money you need to refinance. Once you have this information you can stop by any Century Federal office or fill out our online application to submit a refinance application.