In this tough economy, it would a be a great thing for everyone to save some money on their mortgages. It is true that we can’t purchase most of our dream items i.e. house or cars without a loan. However, within the time when the economy is not on the positive side, repaying the loan could become a hectic and frustrating task for many.
Thanks to Ignition Financial and their refinancing solutions you will now find an easy and convenient tool for your next best financial plan i.e. “slash my payments.” This is a Texas-based professional loan advisory service that has some intuitive and convenient solutions for the common people. However, they are mostly popular for their vehicle refinancing solutions which have helped some car owners to save a huge amount on their car loan.
The simplest way to reduce interest on your car loan is to refinance your car. The concept of refinancing is nothing but to replacing your current loan obligation or rate & terms with a new one. There are some situations when there is a dramatic change in the money market such as fall of interest rate, change in inflation, economic changes and so on. During those periods, you can simply take the opportunity to refinance your car loan with a lower interest rate and other convenient terms and conditions such as the loan period which would be really beneficial for you.
For instances, if you bought a car with a $50,000 loan one year at 7.75% interest rate over five years’ period and got a refinancing offer of 5.75 today, you will be able to reduce your monthly installments by $ 37.76 per month and a whopping $1812 saving on your whole loan. Hence, it will be a big saving for you when you truly need some extra money.
However, there are a couple of conditions when you can consider refinancing your car. For instances, if there is a substantial drop in interest rate i.e. from 10% to 7% or improvements in your credit score, you can go for this option. In addition to these, the present value of your car needs to be less than the loan amount as well if you want a good deal. If everything is for you, you should definitely consult with someone from credit unions or a professional loan providers such as Ignition Financial for an affordable “slash my payments” or refinancing solution.