Comments on: How can I save money refinancing my auto loan? http://automobilerefinancing.net/how-can-i-save-money-refinancing-my-auto-loan Find a good automobile refinancing loan can possible saving hundreds dollar monthly by getting new loan at lower auto interest rate. Mon, 22 Nov 2010 17:30:02 +0000 hourly 1 By: L.G. http://automobilerefinancing.net/how-can-i-save-money-refinancing-my-auto-loan/comment-page-1#comment-201 L.G. Sun, 14 Mar 2010 11:16:14 +0000 #comment-201 When you refinance, basically you are taking out a new loan to pay off the old loan. So, your old loan no longer exists. Your new loan will consist of the balance you owe on your old loan, plus the interest accruing over the term during which you pay off your new loan. The new lender will get a "payoff figure" from the holder of the first loan. That amount will be less than the amount you would have paid in total if you had continued paying the old loan to its maturity date, but it will be at least the principal balance still outstanding on the old loan. If you will open a saving account at a credit union (even keeping only a $25 balance), you can usually take out a loan at a loser interest rate than you will get from a bank or finance company. If you agree that the credit union will automatically withdraw your payment from the savings account each month, sometimes you will be able to reduce your interest rate by another 1/4%. Just make a deposit to the savings account each month in an amount and on a date that will ensure that there is at least $25 more in your savings account than you need for the amount of your loan payment. When you refinance, basically you are taking out a new loan to pay off the old loan. So, your old loan no longer exists. Your new loan will consist of the balance you owe on your old loan, plus the interest accruing over the term during which you pay off your new loan. The new lender will get a "payoff figure" from the holder of the first loan. That amount will be less than the amount you would have paid in total if you had continued paying the old loan to its maturity date, but it will be at least the principal balance still outstanding on the old loan.

If you will open a saving account at a credit union (even keeping only a $25 balance), you can usually take out a loan at a loser interest rate than you will get from a bank or finance company. If you agree that the credit union will automatically withdraw your payment from the savings account each month, sometimes you will be able to reduce your interest rate by another 1/4%. Just make a deposit to the savings account each month in an amount and on a date that will ensure that there is at least $25 more in your savings account than you need for the amount of your loan payment.

]]> By: wisegirl74 http://automobilerefinancing.net/how-can-i-save-money-refinancing-my-auto-loan/comment-page-1#comment-202 wisegirl74 Sun, 14 Mar 2010 11:16:14 +0000 #comment-202 The only way to save money by refinancing is to refinance to lesser amount of years, yes, your monthly payment will be higher but the total interest will calculate to be less. My suggestion to you, do not refi, pay it off sooner by making extra payments. Having a car payment has your finances stuck in a rut. The only way to save money by refinancing is to refinance to lesser amount of years, yes, your monthly payment will be higher but the total interest will calculate to be less. My suggestion to you, do not refi, pay it off sooner by making extra payments. Having a car payment has your finances stuck in a rut.

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