Top 4 Reasons to Refinance
- Compare for lower rates. Lowering interest rates on loans or credit cards yields savings. Some (not all) really low rates come with fees to compensate for the low rate, so make sure to consider the total cost of the lower rate. It may take a couple of phone calls or a few simple steps to refinance for a lower rate.
- Compare terms for lower payments. Changing a payment is another option when refinancing. Interest rates impact payments somewhat, but extending or shortening terms can make a big difference in monthly payments and the amount of interest paid over the life of the loan. Longer terms mean lower payments and more interest. Shorter terms result in higher payments but lower interest. There is no right or wrong term, there is a term that is right for your personal financial circumstances.
- Look for ways to consolidate. Why pay three notes when one will do? Combining debt into one note simplifies life and can improve overall terms of financing with better rates or repayment options. Secured loans sometimes carry lower interest rates. Combining higher rate credit cards or personal loan debt with a secured vehicle loan or mortgage loan offers the best rate and term options.
- Cash out to pay off high interest rate loans. With cash out refinancing, you can refinance an auto loan or mortgage loan for more than is currently owed and pocket the difference. Based on the current value of the vehicle or home, you could reap a substantial amount of money to use.
At Eagle Federal Credit Union helping members with comparisons and free quotes is what we do. Call today and let us help you save money!