Sponsored: 5 reasons to refinance your auto loan

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Is refinancing your auto loan a good idea? The answer is, it depends. Here are some reasons why it might be a great idea for you.

  1. Your interest rate is high. Interest rates rise and fall, and you may have purchased when rates are higher than they are now. After a few years the rates could have dropped, and you can refinance to secure a lower monthly payment and save money over the remaining life of the loan.
  2. The original term is too long, and you’d like to shorten the length of the loan. Longer terms help lower the payment, but they also have higher rates. If you have paid on your loan for a year or more, you may be able to shorten your term and lower your interest rate. This could possibly save you money over the term of your loan.
  3. Your lease is going to expire soon. Some auto leases include an option to purchase the car at the end of the lease. You can do a refinance loan to buy the car when your lease runs out. 
  4. You now have better credit. Your credit score is one of the main factors in determining your rate. If you purchased at a time when your credit score was a little low and it’s now improved, you may be able to refinance to get a lower rate, thus saving you money long term.
  5. Remove a co-signer. Sometimes a cosigner is required to qualify for the purchase of a car. Later on, you (or that person) may not want both names on the loan, you can refinance so that the loan is in one person’s name.

Looking for a new car and want to get pre-approved? Apply online with Deseret First, over the phone or in a branch. It’s quick and easy! If you are financing at the dealer, tell them you want your loan with Deseret First Credit Union

For questions or to apply, call 801-456-7590 or 1-800-326-3328 (x7590).

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