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MSUFCU: Refinancing your auto loan can reduce costs during COVID-19

Morning Mix MSUFCU
Posted at 10:57 AM, May 28, 2020
and last updated 2020-05-28 10:57:40-04

If you are looking for a way to reduce costs at this time, refinancing your auto loan can save you money in a number of ways.

Deidre Davis, MSUFCU Chief Marketing Officer, with us to talk about the benefits of refinancing your car loan to drive down that payment.

What are the benefits of refinancing your auto loan?

With anything involving money and credit, it is important to understand what refinancing a car loan involves. You should review the interest rate and fees, and consider them within the context of your long-term financial plans.

Refinancing your current auto loan can:
· Reduce your interest rate
· Reduce your monthly payment
· Improve your cash flow

You may want to refinance if you need to save money immediately, whether to free up cash for an emergency expense or because of a drop in income, or if you have improved your credit score since you first took out a car loan, as you may have access to better interest rates.

Is it possible to use the equity in my car for cash now?

Cash-out refinancing of a car loan is refinancing your current loan into a new one and borrowing an extra amount against the equity in your vehicle. With this new loan, you may receive a better interest rate and extra funds for unexpected expenses.

If I just completed a car loan in the last few months, can I still refinance the loan?

In fact, it is better to refinance early in the life of the loan than later. This is because as you pay down your loan, most of your interest cost is paid at the beginning — so getting a lower interest rate sooner than later saves you money.

What does MSUFCU offer in terms of auto loan refinancing options?

MSUFCU offers low auto loan refinancing rates and you can get approved in as few as 10 minutes. Other benefits include:
• No application fee
• No prepayment penalties
• Flexible terms up to 84 months

With rates low, it might be the perfect time refinance the loan on your current vehicle.