The first step to refinance an existing title loan is to pull your credit report and see the current details regarding your active title loan. For example, does your interest rate or payoff amount seem higher than what you had initially expected? Or do you have more money and want to get out of your current loan quicker with a lower rate? In either scenario, we can get you an updated title loan quote that would refinance and pay off the existing loan.
Other reasons to refinance include that you do not like the customer service you’re receiving from your current loan processor. There is nothing worse than taking out a title loan only to find it difficult to get ahold of your current lender or get accurate paperwork or payoff details. After you submit the paperwork, the process to get underwritten and approved is simple and you can often use any title loan interest calculator to see the savings in real-time. The underwriter will want to verify your current loan information, employment, and vehicle details.
How Does A Car Title Loan Refinance Work
The typical loan we see here at Car Title Loan Lenders USA will have a repayment term of between one and three years at a fixed principal and interest rate. A higher interest rate may be charged the longer the term of the loan, but the length of the loan will affect your monthly payment amount. This repayment period may span a period of up to thirty years. The loan will include the amount of the loan plus accrued interest. You will be obligated to pay the anticipated interest each month.
With a refinance, you are essentially swapping out your current title loan with a new one. The new lending offer will assumingly have a lower interest rate and better payoff terms that should save you significant money over the life of the loan.
Can I Refinance My Auto Title Loan To Get A Lower Payment
With the multi-year payoff offered by most of the best title loan companies, you’ll make monthly installment payments that include the interest on the title loan. Any amount left over will be applied to the principal and outstanding loan balance. At the conclusion of the loan term, your lender will issue you a disbursement figure or the payoff amount. Make sure that you take the time to read over the loan terms and conditions. Find out if it is a condition of the loan that you agree to close the loan on time and pay off another, similar loan within 14 days (in the 10th year of the loan) or before the loan is due up to the end of the term of the loan, and pay any fees to close the loan within 10 business days so that the fees can be waived.
Keep in mind, that an online title loan refinance is much different than a typical car title loan buyout or payoff. When a lender refinances your loan they’re simply agreeing to modify the payments and payoff terms. With a buyout, you have a separate loan company that agrees to buy out or pay off your loan. At that point, you start fresh with the new lender and hopefully have more manageable payments and payoff terms. Car Title Loan Lenders USA can refinance your loan down to a rate that’s more in line with current lending amounts and we can even beat the industry average in select cities. For example, contact us if you’re looking for a title loan in Albuquerque or if you want a quote for a loan in Atlanta. We’re confident we can get an APR that’s lower from any lender near you.
Get Approved for A Car Title Loan Refinance If You’re Late On The Loan Payments
The majority of applicants for a title loan refi are current on their loan payments and simply looking for a lower rate or APR. There are some scenarios though where borrowers want to avoid repossession or get back to current on loan payments with a refinance. We advise people in this situation to work with their current lender as much as they can and still apply to see if there are any options to negotiate or change the existing online title loan details. Most people do not have the time to go through the entire process, but if you have a good understanding of how the underwriting process works, you can find out when you have a time period to refinance for a second time and make corrections to the first loan.
It’s best to consolidate payments and pay more each month with a title loan refi. But if the value of the car has declined and you still have a loan with a balance that is higher than the value of the car you can potentially have the loan closed and have the loan converted into an equity loan. You will probably need to pay more each month to obtain a quicker payoff equity loan, but it is legally possible.
What Are The Reasons To Refinance A Title Loan
The main reasons to refinance a loan revolve around the benefits you receive by getting a quicker payoff with a lower interest rate. Even receiving an interest rate that is just a few points lower can save you hundreds or thousands of dollars over the life of the loan. When considering the benefits of refinancing your loan make sure that the payment amounts on the loan are not too high.
We all know that title loans build your credit and it’s important to have the best rates and lender payoff so you can stay current. It is important that the loan application does not have any mandatory title loan insurance that may lead to increased costs and payments. Because auto title loans with variable interest rates can have a long-term repayment, it is hard to calculate whether the payments are too high if you have a loan for a vehicle that is only used for a few years.
