Refinancing your car or truck could be a money-saver.
But is it the right move for you?

Thinking about refinancing your car loan? A refinance can help you save money, but it has to make sense for your own financial picture. Here are some things you need to consider before applying.   

Prepayment Penalties

Check with your current lender. You’ll need to find out if there are any prepayment or early payoff penalties on your current loan. If there are, crunch some numbers. Is the amount you’re going to save with a refinance still more than the fee you’ll end up paying? If so, refinancing may still be a good option.
 

Interest Rate

One of the most common reasons people refinance is to secure a better rate. Find out what rate you’re paying on your current loan and compare it to the rate you may qualify for with a refinance. If it’s significantly less, then a refi can save you money. If the rates are about the same, or the refinanced rate is higher, this may not be the right time to refi.
 

Your Credit Score

How’s that number looking? If your credit has improved since you bought your car, you may qualify for a better rate. But if your score has taken a dive, you may want to work on bumping that number back up first.
 

Lender Requirements

When you’re looking for lenders to refinance your loan, ask what their requirements are. Some lenders won’t refinance cars that are older than a certain year or that have exceeded a defined mileage requirement.
 

Your Goal

It may be tempting to extend the term of your loan with a refinance because doing so lowers your monthly payment. But you’ll also end up paying more in interest. If your overall goal is to save money, you need to compare how much more you’ll be paying in interest with how much lower your payment will be. If cash flow is your issue and you just need to lower your payment, extending the term may be a realistic option.
 

I'm Ready to Refi

compare our rate and save

Rates as Low as

4.89%

APR*
When you refinance
your auto loan with MHV!
 

Love the rate but have some questions? 
 
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So…is now the right time to refi?

 
When is the right time to refinance? If you can say yes to any of these questions, it may be your time.
 
  1. Your credit has improved.
  2. You’re struggling to make your current payments.
  3. Rates are a lot lower now than when you first purchased your car.

Calculate your auto loan refinance savings


 

Are You Ready to Refinance Your Car?
Use this checklist to make sure you’re ready to apply.


Checkmark  Find a lower rate or better term that you’ll qualify for. Run the numbers to confirm a refinance makes sense for you.

Checkmark  Confirm no prepayment/early payoff fees from your current lender.

Checkmark  Get a payoff letter from your current lender. This usually has an expiration date so don’t request the letter until you’re ready to apply.

Checkmark  Gather income verification documents such as paystubs or tax returns that may be required when you apply.

Checkmark  Request an insurance binder from your insurance company. Most lenders require proof of insurance.

 
OK, Take Me to the Application

HAVE car loan refinance QUESTIONS? THESE ARE THE ONES PEOPLE ASK US THE MOST.


 
 
*APR = Annual Percentage Rate. Rates are effective 10/1/2022, are subject to change and reflect a .25% discount for automatic payments from your MHV account.  Rates vary based on factors including your credit ratings, term of loan and/or year of vehicle. Loans are subject to approval and exclude leases and other select products.  Payment example: 36 monthly payments at 4.89% APR would be $29.92 per $1,000 borrowed. Federally Insured by NCUA.