Auto loan modification could possibly be the good option

Some might think you can only get loan modification on home loans. That isn’t true. Auto loans could be refinanced as well. In fact, right now might be a better time than ever to refinance car loans, as rates for auto loans are lower than they have been in a while. Act easily enough, your auto loans can be low interest loans, or at least lower than to start with.

Your home and your automobile could be refinanced

Just like mortgage loan modification, you can refinance your vehicle as well. Auto loan rates are trending downward. You may not be able to afford not to refinance if these low rates keep up. According to the Washington Post, auto loan rates are trending lower. Lenders are seeking to lend, and dealerships are seeking to sell. That said, bear in mind that dealership financing, and financial institution financing are a bit different. One is usually more expensive than the other. Banks offer lower rates than dealerships, as banks do not get a bonus for loaning to you at higher interest.

There is an issue

There is a catch. Auto loans, like so many other types of loans, have the rates determined by your credit score, so if your score is high your rate is low. So auto loans for bad credit may not be able to be refinanced or even modified. The exact same article within the Washington Post puts auto loans for great credit scores at 5.7 percent. Nevertheless, poor credit scores average out to 18.5 percent. Fees and other conditions may exist, depending on the lender. It behooves one to shop around.

This is the moment to refinance, if accessible

Well, this is accessible more for individuals with good credit, rather than for many who aren’t. Bear in mind things that look too good to be true often are. Especially be wary of offers for loan modification these days. If you are thinking of entering a loan modification program, check out the company before you commit. Make sure you realize who you are handing your cash to.

More on this topic

Washington Post

washingtonpost.com/wp-dyn/content/article/2010/08/28/AR2010082800170.html