Your car and your house are probably two of your largest expenses from month to month. With multiple types of loans, deciding which one to prioritize can be a challenge — especially when you have the opportunity to refinance. Here’s what you need to know about refinancing, from why it makes sense to where you should start.
Refinancing a loan essentially means taking out another one to pay it off. When you signed the agreement for your car loan or mortgage, you probably compared different lenders to find the best rates. Those rates continue to change over time. If you switch to a new lender today, there’s a good chance you can get a different loan term, monthly payment or interest rate. That often means you’ll pay less in the long run.
The principles of refinancing remain the same when you compare a car loan versus a mortgage. However, the two loans have some key differences that you’ll need to consider before you refinance either:
While you can get a car loan while refinancing your house, doubling up and getting a great rate on one could prevent you from getting the best deal on the other. If you want to refinance both, starting with your car often makes the most sense because you have a shorter window of time to get a new car loan. Additionally, refinancing your car loan can help lower your debt-to-income ratio, which means you’ll be likely to get a better rate on your mortgage.
If you’re ready to refinance your car loan, RefiJet can help you save. Find out if you qualify and get in touch with our team to get started!
The vehicle title is the legal document that is the state’s record of who owns the vehicle.
