3 Questions to Ask Yourself Before Refinancing Your Auto Loan
You may have the car of your dreams already, but your current loan situation may be less than ideal. Refinancing your auto loan is a great way to lessen financial stress and make the remainder of your loan payoff process easy, all while saving money! Here are some things to keep in mind before making the switch:
1. What is your current interest rate?
Are you happy with your current interest rate or could you benefit from a lower one? One of the best benefits of refinancing your auto loan is lowering your interest rate to save you money. Refinance with USC Credit Union and score a rate as low as 5.74% APR*!
2. When did you begin paying off your car?
Before refinancing, it’s important to know how long you have been paying off the loan for. If you have only been paying for a few months, it is not in your best interest to begin the refinancing process. Refinancing is a preferable option when the value of your car is less than the amount of loan still needing to be repaid.
3. Are you comfortable with extending the length of the loan?
Although you may get a lower interest rate through the refinance process, it is important to do the math and see if you will end up paying more money as a refinanced loan might need to be extended to a longer period of time in order to score you a lower interest rate or monthly payment. Depending on your situation, it may be easier to extend your loan term.
*Auto Loans “as low as” rates include the 0.25% discount for automatic loan payments and apply to 2022 or newer vehicle models. Such rates are subject to change based on vehicle year. Other Loan-to-Value requirements may apply. To qualify for the automatic payment rate discount, loan payments must be made automatically from a qualifying checking account. Annual Percentage Rate (APR) is effective as of 3.1.2024, is based on creditworthiness and underwriting factors, and is our best rate. Proof of income may be required at the time of loan funding. Monthly payment per $1,000 for 36 months at 5.74% is $30.30. This payment example is for illustration purposes only. Your actual payment may vary. Minimum loan amounts include $8,000 for a 60-month term loan, $15,000 for a 72-month term, and $25,000 for an 84-month term loan. Membership eligibility requirements and membership fees may apply; please call (877-670-5860) or visit www.USCCreditUnion.org to confirm eligibility. All credit union loan programs, rates, terms and conditions are subject to change without notice. Rates do not apply to existing USC Credit Union Auto Loans.
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