Refinance Savings Estimator Calculator
Frequently Asked Questions
When should I consider refinancing my auto loan?
Consider refinancing if: interest rates have dropped significantly since your original loan, your credit score has improved, you want to lower monthly payments, or you can get a better rate elsewhere. Generally, refinancing makes sense if you can save at least 1-2% on your interest rate.
Will refinancing extend my loan term?
It depends on the new loan term you choose. Refinancing typically extends the term (often resetting to 48-72 months), which lowers monthly payments but may increase total interest. You can refinance to a shorter term to save on interest, but monthly payments will be higher.
Are there fees to refinance an auto loan?
Some lenders charge refinancing fees ($100-$500), while others offer no-fee refinancing. Additionally, some states require re-titling fees ($20-$100). Always factor these fees into your savings calculation - refinancing should still save money after fees.
How much can I save by refinancing?
Savings depend on the rate difference and loan balance. Refinancing from 8% to 4% on a $20,000 loan could save $1,500-$3,000 over the loan term. Lower rate differences or smaller balances yield proportionally less savings. Use this calculator to see your specific potential savings.
