How to Lower Your Car Payment by refinancing at a lower interest rate

With the economy in such a weak state nearly all of us have had our income affected. Being self employed myself I have found that I have needed to tighten the purse strings. I did a bit of research made some calls and lowered my interest rate on my car loan by 5%. This brought our payment down by $100. It was easy. This is what I did.

Instructions

1




Take a look at your current loan. You will need the amount your payoff amount, interest rate and mileage on your car. If you have experienced a decrease in your monthly income write down what you know. How much has it gone down? How long has it been down? These are questions that you will be asked. You will also need to know how long you have been paying on your current loan and make sure you have not had any late payments or missed any payments. They will be more willing to work with you if you are in good standing with their company.

2

Now call the company that holds your current car loan. Ask to speak to someone in their finance department. Once you are transferred to someone write down their name, extension and e-mail address. If you get cut off or forget something you will want to speak to the same person. If you do not get the information and have to call back you may have to start over with a new person. Ask if they do refinancing on current cars loans. Let them know what your current percentage rate is and tell them you would like to lower it. By letting them know you want to lower your rate , you are showing them that you know it can be lower then what you are paying now. And that you are wanting to stay current on your payments to them. Do not make it sound like you are unable to pay. Be sure to explain your financial situation. If they are willing to help you go the next step. If they are unable or do not refinance loans go to step 4.

3




If your finance company is willing to help you gather all of the paperwork and information as soon as possible. The window to respond to them is very short. The fastest way is to have the agent e-mail the forms needed to get the paperwork started. Print them up fill them out and attach any documents that they ask your for. If you forget anything this will affect how long the process takes and it may affect your approval. Be sure to ask questions. If you are directed to another person be sure to get their information as well. Keep in contact with the original person you spoke to. Use them to get information on the status if it seems to be taking a long time.

4

If your finance company is unable to refinance your loan to lower your interest rate you may still have options. If you google the words car loans you will find a very long list of banks and finance companies. Look for companies that you have heard of. Also another solution would be to contact your bank , let them know the situation and they may be willing to get started as well.

5

Check your e-mail regularly, the finance company may need further information and you may need to respond by a certain time. Stay on top of it. Read the fine print on all new contracts, be sure to ask questions you do not want any details to be left out. When the processor calls to inform you of your loan details ask he or she to e-mail it to you as well. They sometimes speak so quickly that details are sometimes lost in the mix. Make sure the processor breaks down all of the specifics. Length of new loan, interest rate and when your should expect to get your final contract to be signed. This way you can look over the e-mail and compare it to what your are being told. You will also be looking for the new contract so that you will be able to look over the information that they have e-mailed you as well. When you are sure that everything is in order get the contracts back to the finance company before the deadline date. Be sure to calls them if there are any mistakes. Do it as soon as you notice.

6

Once you have jumped through all of the hoops and you now have a lower interest rate and a new lower payment, pat yourself on the back. Taking control of your financial security is an ongoing process and an important part of your future.