If you feel like you are paying too much on your auto loan, you may be able to lower your expenses with an auto loan refinance. What is it? Auto refinancing replaces an existing loan with another loan. You benefit by getting better terms on the new loan, either getting lower monthly payments, or lowering the total interest paid by the end of the loan term, or even both if it's a really sweet refinance deal. The refinancing company benefits by gaining a new customer. Auto loan refinancing is usually an easy and quick process. Just fill out a few no-obligation applications, wait for some offers to come in, and transfer the loan. But you should know about some of the common requirements needed to get a request approved.
General Auto Lending Requirements
Applying for an auto loan refinance is just like applying for a brand new loan, just like you did with the original loan. So, the general loan industry requirements are still applicable. You have to be at least 18 years old and have a valid driver's license. You'll need to provide records of stable employment and adequate income. Employment and income minimums are different amongst the many lenders out there, but generally at least one year with the same employer(s), and making a gross annual income of $18,000-$25,000 should get most people approved for most auto refinance loans. Another major item that you need is proof of full-coverage insurance.
Minimum and Maximum Loan Amounts
Each auto refinancer will require a minimum auto loan refinance amount, and set a maximum limit to the amount you can refinance. These thresholds vary with each lender. In general, however, you will find that most lenders will require refinancing for at least $7,500. Anything less than that will not be considered profitable enough (i.e. interest). Conversely, $75,000 is the average maximum amount that a lender is willing to refinance. Anything more than that will be deemed as too risky.....
More auto refinance requirements are covered at http://autorefinanceloans.org/auto-loan-refinance
See how much money you can save by refinancing with the auto refinance calculator found at http://autorefinancecalculator.org
Article Source: http://EzineArticles.com/?expert=Blaine_B_Smith
