Financial Finesse: Refinancing Loans to Save Money
Everyone is looking for ways to save money in this current economy. Here are a couple of ideas from The Kids & Me contributor Rick Hastings, retired NC CPA, for those with loans:
1. Refinance your car loan if your current interest rate is high.
"Refinancing your car means replacing your current auto loan with a new one. The new loan pays off your original loan, and you begin making monthly payments on the new loan. The application process for refinancing doesn't take much time, and many lenders can/may make determinations quickly. Still, there are things to consider before taking the plunge." (Source: Chase, "How to Refinance a Car", chase.com)
Use this chart to compare the rate on your current loan to other auto loan rates being offered today. (Source for 6-21-22: https://www.bankrate.com/loans/auto-loans/current-auto-loan-interest-rates/ )
Would you benefit from refinancing? Find out with this resource from Chase Bank: https://www.chase.com/personal/auto/education/financing/guide-to-refinancing-a-car-how-it-works
2. Refinance your house loan if your rate is high.
For similar reasons for refinancing a car loan, you may be interested to refinance your home loan. Check out this explanation:
You can see how your current home loan rate compares to the market:
The trend for the rate is currently dropping (6-24-22):
If you are behind on house payments....
There are resources to help you get on track and current with your house payments:
A) NC Home Owner Assistance Fund
B) HOPE Hotline
"When you call the Homeowner’s HOPE® Hotline at 888-995-HOPE (4673), our experts will work with you to develop a plan tailored to your unique situation. Falling behind on mortgage payments can happen for many reasons, from job losses and rising interest rates to overwhelming
debt loads to name a few.
Call for FREE expert advice and get back on track."
C) HUD (Federal Program) 1-888-442-8188
"The nationwide network of HUD participating housing counseling agencies have been helping customers across America for more than 50 years by providing answers needed to make informed housing decision. Use the search link to find a HUD participating housing counseling agency near you."
3. And lastly, refinance to escape bad terms for a current loan.
Dave Ramsey, respected and proven financial coach, gives advice on finding the best loan terms in this article: