Transferring your mortgage to a new lender can lower your interest rate, reduce your monthly payment or even let you to pay off your loan early. But, first you must determine if it makes sense.
First, look into loans with shorter terms. If you currently have a 30-year fixed-rate loan, refinancing to a 10-, 15- or 20-year term will lower the total amount of interest you will pay and let you to pay it off faster. Then look at rates. Generally speaking, if rates are lower by one percent or more, it may be a good time to transfer. But, when shopping for rates, be careful. Lenders offering no points and fees usually charge higher interest rates.
To figure out whether it pays to transfer, you must calculate refinancing costs and determine how many months will it take to break-even. You should consider transferring if you plan to stay in your home for more than the time it takes to break-even.
Remember, you can also transfer personal loans and credit card balances and save money. By transferring a loan to a new lender you can spend less money each month. So, no matter what kind of loan you currently have, you should check out your refinancing options with several different lenders. Check out our website for more information including our current rates and the various loans we offer. Remember, transferring a loan can help you squeeze more money out of your monthly budget and save more at the same time!
Transferring or refinancing a car loan with a different lender is one of the best kept secrets around for saving money, but most people never think of it.
Car refinancing is like mortgage refinancing – only easier, quicker and without closing costs. When you transfer a car loan, you pay it off with a refinanced loan from a different lender that offers some benefit, such as a lower Annual Percentage Rate (APR), longer payment term or cash offer. A lower APR can reduce the amount of interest you will pay over the life of the loan. A longer term could help lower your payments. And, a cash offer can simply put money in your pocket.
However, if your current interest rate can only be reduced by a few points, transferring your loan probably won’t save you enough money.
Begin by researching lenders. Credit unions, banks, finance companies and online lenders refinance car loans, so be sure to compare rates. And, be prepared to research new lenders because most will not refinance their own loans. Be sure to visit our website for additional helpful information including our current rates and the many benefits we offer.