How Auto Refinancing Works
August 21, 2014
How Auto Refinancing Works. Lots of people pay too much in interest when they purchase a car. We have helped consumers save thousands of dollars by financing or refinancing their car loan at a lower interest rate. Odds are, we can help you. And our service is FREE! All you have to do is fill out a loan application; once you have submitted it we will shop your loan to various lenders to find you the best possible rate; or, if you have been pre-approved, we send the application to the lender that pre-approved you.
Here’s an example of how it works:
- Original Loan – $21,000 financed at a 6.99% APR for 72 monthly payments of $357.93.
- Refinanced Loan – $21,000 refinanced at an 3.25% APR for 72 monthly payments of $321.42.
- The Result – payments reduced by $36.51 per month! Reducing payments by $36.51 for 72 months results in a total savings of $2628.72 over the term of the loan!
Completing the Loan Application
You can complete an application online . The loan application consists of various sections that you must fill out. You will need to supply personal data such as date of birth and social security number, your current and previous addresses, employment history and some financial information (such as who you bank with and how much money you make).
Once you have completed that portion of the application, you will have to provide information about the loan itself. If you are trying to finance a purchase, you will need to know how much you want to borrow, how much of a down payment you are planning
on, and how long you would like the loan to run (usually 2 – 5 years). If you know the make and model of
the car you want to buy, all the better.
It you want to refinance an existing loan, you will need to know more information than just the loan amount, make and model. It is helpful if you have your existing loan agreement, which contains all of the critical information about the financing that you would like to replace (such as the loan term, finance charge and lien holder). In addition to the information on the loan agreement, you will need to know the current mileage of the vehicle.
Once you have completed all of this information you must confirm a few things: that you really are who you say you are; that the application is correct to the best of your knowledge; that you are 18 years of age or older; and that you authorize us to pull your credit report. After doing all that, your application is submitted, and we go to work finding you a better deal.
Once you’ve submitted your loan application, we take all of the data that you provided, pull your credit report and use this information to shop your loan to lenders in our network. Various factors play into finding you a better loan: your credit history, your income, how long you’ve been living at your current address, how much the desired loan is, how long the loan term is and other factors.
Finding you a loan usually takes about a week. That gives us time to look at the loan and talk to lenders in our network about your better application. During this time, lenders may need to pull another credit report to help them in their process (this does not adversely affect you or your credit). If we can’t find you a better loan, then we will send you notice via email or U.S. postal service.Source: interestrategenius.com