If you want better terms than your existing vehicle loan, auto refinancing might be a smart alternative. Essentially, you get a new loan and use it to repay your previous debt. This may seem like a good way to help you reach your financial goals or save money, but is it suitable for you?
Our refinance car calculator uses the information you supply about your existing vehicle loan as well as a possible auto refinance loan to provide a loan estimate. Then it crunches the figures to see whether refinancing your car loan makes sense. It can tell you if you’d pay more or less interest with a new loan and how your monthly payments could vary.
Our car refinances calculator analyses the following information to help you assess if refinancing your vehicle loan is a good idea for you:
• The current loan amount
• The current monthly payment
• The current interest rate
• Loan amount
• Loan length
• Interest rate on refinance
Remember that additional variables might influence your car loan refinancing. This vehicle calculator does not account for prepayment penalties or interest accrued after your most recent auto loan payment. When you pay off your existing debt, you may be required to pay penalties and interest. The accuracy of the inputs you supply will also have an influence on the outputs, so try to be realistic about your predicted interest rates, loan periods, and loan amounts for the best results.
Loan balance at the moment
The amount owed on your vehicle loan is the current loan balance. This figure may fluctuate somewhat from the amount owing on your previous vehicle loan due to interest that may have accumulated after your most recent payment. On your vehicle loan statement, you should be able to locate your loan balance or a payback amount. If you can’t locate the information you need on your statement, contact your vehicle lender or go to its web site.
Current monthly instalment
You should be able to locate your monthly payment amount on your vehicle loan statement. You may also look up the amount of your most recent payment. This implies you have a fixed-rate vehicle loan and your most recent payment did not include any late or other penalties.
Interest rate at the moment
The current interest rate on your vehicle loan should be listed on your auto loan statement. If you can’t locate it, check your original vehicle loan documentation (if you have a fixed-rate loan) or call your lender.
Amount of the refinance loan
The amount you want to borrow with the new car refinancing loan is referred to as the refinance loan amount. If you want to pay off a portion of your current loan with cash, this may be less than your current loan amount. If you need additional funds to cover prepayment penalties or accumulated interest on your previous loan, be sure to include it in your refinancing loan amount.
Term of a refinance loan
This is the term of the new car refinancing loan you want to get. When compared to lengthier loan durations, shorter loan terms may result in lower interest rates and less total interest paid. However, the trade-off might be a greater monthly cost. Longer loan terms enable you to spread out the loan payments over a longer period of time, potentially lowering your monthly payment. However, you may end up paying more interest throughout the life of the loan and facing higher interest rates.
