What is Refinancing?

Refinancing is paying off your existing loan with a new loan from another Bank. Refinancing is very common in the housing market but there are many reasons why Refinancing also makes sense for vehicle loans some of them include

• You can lower your interest rate and save money
• You get the opportunity to lower your monthly payment
• Your credit has improved and you qualify for better terms
• Your family situation has changed and you can no longer afford your monthly payments and
• You are making a big purchase like house and want to lower your debt-to-income ratio

Types of Refinancing

The type of refinancing depends on your personal situation and credit history. Below are some common type of refinancing:

• Cash Out Refinance – You can take some of the equity out from the Car
• Lower Interest Rate Refi - You can lower your interest rate and save money
• Lower Payment Refi – You can lower your monthly payment to reduce personal Debt-To-Income (DTI) ratio
• Lower Interest rate and Lower payment Refi – you can lower your interest rate as well as monthly payment and save money
• Shorter Term Refi – you can shorten your loan term and payoff your balance quickly

The above options could work for customers with excellent credit scores as well as for borrowers with poor credit history. Your current loan could be from a small, niche lending institutions, online lenders or from a large, nationally recognized banks and credit union. p2p Auto will assess your situation and offer your multiple options so that you can choose the loan terms that are right for you.

Advantages of Refinancing

In addition to peace of mind and greater financial security, Refinancing can offer several advantages.

• Qualify for a lower interest rate
• Lower monthly car payment and improve your family’s budget
• Skip a payment
• Improve cash flow in situations
• Take cash out from the equity that you might have built in the car

Refinancing Process

In simple terms, Auto Refinancing by replaces your existing car loan with a new one. Here is how a general Refinancing process works.

• Submit the details of your car and your current loan information on p2pAuto.ai
• p2p Auto will review your information. If approved, we’ll offer you a choice to pick your monthly payment, loan team and/interest rate
• You sign the new contract online
• We'll work with your existing Bank to transfer the loan/title in our name

Overall, auto refinancing is much straightforward and quick process than home refinance. p2p Auto’s Refinancing process is simple, fast, convenient and free! The entire process is online and will be completed efficiently.

FAQ's

Here is the frequently asked question about auto refinancing