You’ve heard experts talk about refinancing. To be good with money is to be someone who knows how to use it wisely. Money moguls allow their accounts to work for them and debt is not an issue. Most of all, a high APR doesn’t even cross their vocabulary.
But, what if you’re not an expert or a mogul? What if you’re an everyday person and you just want more out of your monthly budget? You don’t have the time (or interest) for games, and you think that refinancing a car loan should be straight forward. How is all of this going to give you cash leftover?
What refinancing a car loan does to your budget
First and foremost, having a high annual percentage rate will eat up your budget. At the beginning of a loan cycle, payments go primarily towards interest. Very little is directed at lowering the principal. That’s because lenders want to ensure they collect their dues first. Refinancing a car loan allows borrowers to even out the playing field.
When you refinance to a lower APR, not only do your payments become smaller, but your interest charges do, too. You’re able to jump away from the continuous cycle of high-interest loan payments.
Why do credit unions offer to refinance?
Credit unions work as nonprofit institutions, which is why their rates are typically lower. They offer to refinance because they want your business, plain and simple.
Additionally, providing helpful services, like loan refinancing, allow credit unions to offer other things such as banking and wealth management. They gain you as a customer, and by refinancing through them, you receive the benefit of their operational model.
Achieva’s Refi and Ride
If you think you are paying too much on your current car loan, Achieva offers rates as low as 2.75% APR*. With a fast approval process, you can take advantage of this limited-time offer today. Free up your budget and see if you can lower your payment, all in a few easy steps.
You’ll also receive convenient payment options online, in person, or by mail. All of these have no pre-payment penalties, so you’ll be able to tackle your debt even faster.
Things to ask before refinancing:
– How will refinancing affect my credit score?
– Is there a charge for refinancing a car loan?
– Will my vehicle still have GAP protection?
– How many months is my new loan for?
– Will my new loan be more than what my car is currently worth?
Refinancing to lower your payments
You don’t have to be an expert to know that refinancing a car loan to a lower rate is a good thing. After considering all of the points above, you’re ready for your next move. Lower your payments and enjoy the cash you have leftover. Your wallet and your budget will thank you.
*Refinancing is subject to credit approval by Achieva Credit Union. Additional terms and conditions apply such as vehicle age, mileage, value, and debt ratio. Auto APR=Annual Percentage Rate and is based on loan term, credit and collateral qualifications. For a 2019 model year, A loan amount of $10,000, a term of 36 months, a 730 credit score, an APR of 2.75%, your monthly payment would be $290.04. Floor rate 2.75%. If you choose to refinance your loan with Achieva Credit Union, we may be able to reduce your APR. However, if you choose a loan term that is longer than the term left on your current loan, you will pay interest over a longer period of time and the overall cost of the loan may be higher. Rates are subject to change without notice. Refinance terms available for Non-Achieva loans only. Membership qualifications apply.