An auto loan refinance calculator is an invaluable tool that can drastically improve the state of your finances by helping you make informed decisions in regards to your car expenditures. We spend a lot of money on our cars. Just think, month after month we send in our monthly payments like clockwork. And for how long? 36, 48, 60 months? Maybe even more on some loans? Now, recall all the money that we spend on gas, upkeep, and insurance premiums. We literally spend thousands upon thousands of dollars by the time our auto loans are repaid.
If we are going to spend that much money on something that is basically a consumer item and not a primary asset, then we better make sure to take advantage of any expense breaks that come our way. One particular type of break that has the potential of saving us thousands of dollars is the auto refinance loan. But how do we know if an auto refinance offer is worth our consideration? An auto loan refinance calculator can help you make sense of all the figures involved, allowing you to know with great accuracy and confidence how much you will be saving and on what terms. Here's a primer on how to use one effectively.
1. Determine Where You Currently Stand
The first thing you'll want to do is determine how much principal and interest you have remaining on your current loan. So, enter the original principal, interest rate, loan length, and first payment date of your original loan into your calculator. Then, populate the amortization schedule to see what your remaining balances are as of today.
Note: An alternative to running the calculations is calling your lender and getting a payoff quote. This amount is the remaining principal plus any interest and fees that you'd have to pay if you wanted to payoff the loan within a set number of days (most lenders use ten days as a benchmark). You can also ask for the remaining interest balance. Calling your lender is worth your time since you're getting the figures straight from the horses mouth and they'll be really accurate.
2. Analyze a Refinance Offer
Enter the remaining principal (or payoff amount) into the auto loan refinance calculator. Then, enter the proposed interest rate, length of time, and first payment date for the auto refinance loan. If the total interest expense under the new loan is noticeably lower than the remaining interest balance of your current loan, it is a strong indication to refinance...
Learn about other important figures that you must consider in order to make an informed decision on whether or not to refinance, and on what terms, by visiting http://autorefinancecalculator.org. The website has a free, easy-to-use auto loan refinance calculator and a fully detailed tutorial on how to use it, with examples.
If you want to learn more about the particulars of auto refinance loans, visit http://autorefinanceloans.org.
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