In today’s world, refinancing your car, truck or motorcycle is relatively easy and can be done online in most cases. The following steps will simplify the process for you when you consider refinancing:
Step One: Consider Your Current Situation
Examine your most recent auto loan statement. You will need to note your current interest rate, term length, remaining principle/balance, any additional monthly fees as well as pre-payment penalties. If interest rates are lower today than when you took out the loan, if your credit score has increased, or your monthly expenses have decreased, refinancing may be a great option for you.
Most lenders will look at your loan-to-value ratio (this is what you owe on the car compared to what it is worth) so if you are “upside” down by less than 20% you most likely can refinance. At SALrefi, we generally accept applications up to 120% loan-to-value, but some exceptions do occur.
Lenders will also consider credit score, monthly income versus expenses, whether previous vehicles have been repossessed, as well as bankruptcies. If you’ve experienced a bankruptcy over 2 years ago, you may still qualify to refinance with us. Our lenders want to see that you have been making payments on your current loan. We are willing to look at each refinance on an individual level.
Step Two: What is Your Goal?
Are you looking for the lowest monthly payment? Do you want to decrease the length of your loan? Are you unsure if you got the best financing option at the dealership? Understanding your goal when refinancing will help the lender recommend the best terms to achieve those results. A SALrefi loan specialist can advise you on what your best option is considering your goals, current loan, and financial situation.
Step Three: Prequalify to See Possible Savings
If you are worried about having your credit pulled, get prequalified before you officially apply for a new loan. This process will provide a close estimate on savings and likely terms to help you determine if refinancing is a good option for you.
Here is a checklist of information you will need to prequalify and/or apply for a refinance:
- Current loan details
- Vehicle information needed: make, model, year, mileage, and VIN
- Current monthly income and expenses
- Current job or retirement information
- An estimate of your credit score
- Driver’s license and state where issued
Step Four: Apply and Finalize Terms
We partner with many credit unions across the country looking for lending sources that are very competitive and consumer friendly. Once you have officially applied, be it online or via telephone, sit back and relax. SALrefi will do the legwork to find you the best lending source from our credit union funding partners. This is the point in which your lending specialist will pull your credit to finalize all terms and details of a new loan. You are not obligated to move forward unless the terms of the loan meet with your approval.
If you have questions about refinancing, or simply want to inquire about qualifying for additional monthly savings, call Stellar Auto Loans at 823-725-7334, email [email protected] or start by filling out our online application. There are no fees to apply.