subject: Refinance your Bad Credit Loan in Portland, OR [print this page] Refinance your Bad Credit Loan in Portland, OR
One of the easiest ways to lower your car payment and make your monthly expenditures more affordable is to take advantage of a refinance auto loan. Typically, these loans are originated by banks and credit unions, although finance companies can also offer them.
So why would you want to apply for a refinance auto loan? One of the biggest reasons is that it will lower your monthly payment. By taking a loan that has two to two and a half year left and refinancing it for another three to five years, you can take some of the pressure off your monthly budget an especially important consideration in these stressful economic times.
There are a couple of things to remember with an auto refinance loan: car dealers don't do these types of loans. They are in the business of selling cars and cannot help you with a refinance. Captive finance companies, such as GMAC and Ford Motor Credit will do refinance loans but only if the loan you wish to refinance is currently with them. Your best source for a refinance auto loan is your local bank or credit union.
One thing that you need to keep in mind is that lenders look upon a refinance auto loan just like they would any other auto loan. They are going to look at your credit history as well as your FICO score. They are also going to determine the equity you have in your car. If you owe more on your current loan that the vehicle is worth, it is going to be much harder for you to get your vehicle refinanced. As a rule of thumb, you need to be at least halfway through your current loan term before you should consider a refinance. This is assuming that you put down 10% or less when you made your initial purchase. If your down payment was significant that is, if it was 25% or more of the purchase price it may be possible to apply for a refinance auto loan earlier than halfway through the term.
A good way to judge your vehicle's current value is to visit a web site such as kbb.com. Once there, you can plug in the correct information and receive a fairly accurate appraisal of your car.
For more information on auto loans in Portland, click here.
