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Is Car Refinancing Just Like Home Refinaning?
By admin | February 10, 2010
No! There are so many additional fees in Mortgage re-financing. Titles, Insurance, Appraisal, Inspection, Underwriters, Undertakers…feels like it at times. Either way your looking at up to 3% of your existing cost of the home to refi. It’s like paying the closing cost all over again when buying your home.
When you buy your car there are no closing costs. Just taxes a add-ons like warranty and gap coverage. So when you go to refinance a car loan there usually very small fees if any. If your car loan is at 6% and the current rate is at 4% it’s a no brainer.
However, make sure you don’t re-finance an additional amount unless that amount is going to be transferred directly to paying down or off another debt. Another thing to watch out for is extending the time of the loan. You can often lower the monthly amount of the loan by adding an additional 2 years onto the pay-off time. To make this percentage worth it the timeline needs to remain the same. It all depends on your reasons for doing it. Play it smart and do what is best for your financial situation.
Topics: Autos | Comments Off
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