UMe’s Guide To Financial Fitness in 2021: Part 5
Hello UMe-verse, it’s time to stretch your knowledge about loans. Did you know that you can save money simply by refinancing a loan you already have? It’s true!
As time passes, your financial position may improve… or the current market rates may change… and the option to improve your original loan can present itself. That’s where refinancing comes in!
Refinancing refers to the process of revising and updating the terms of an existing loan. This can mean a lower rate and a lower payment, which means more money for U! And if you don’t already know, we LOVE saving money for our members.
So, let’s get started! Here’s a quick guide to refinancing your auto loan or home loan.
Refinancing Auto Loans & Home Loans
In the financial world, some may refer to refinancing as a ‘loan refi’ or simply a ‘refi’ — so if you come across that verbiage, you’re now officially prepared. When it comes to home loans and auto loans, refinancing can help you save money and even pay off your loan faster! Really, really! Here’s how:
Say you purchased a car a year ago when your credit was ‘meh’ and your other finances were not where you would’ve liked them to be. Odds are, your auto loan rate wasn’t as good a rate as it could have been. Fast forward to now; You’ve been hitting UMe’s Financial Fitness Gym (AKA our blog post tips) and your credit has improved, along with your income! That means you can (and should!) revisit your auto loan to see if a refi can save you money! Higher credit scores usually mean better rates, which leads to more money in your pocket.
UMe Pro Refi Tip: Not only will we happily do our best to refinance a loan you have with another lender… we will also refinance a loan you already have with us, to save U money, too!
What’s that? You’re asking about a home loan? Well the same principles apply to a home loan — but on a larger scale, of course. Let’s say you purchased your dream home five years ago when the rates were pretty high. Well, with home loan rates at historic lows, you could lock in one of these lower than low rates and end up saving BIG!
A better credit score, less overall debt, and more income are all factors that determine your rate. So if you have a loan and you’ve experienced any of these changes for the better, chances are it’s a good time to explore a refi!
We hope these examples helped to shed some light into the possible benefits of refinancing. Team UMe is always looking out for ways to save U money — it’s our favorite thing to do. (Seriously!) Want to see if you can refinance and save? Give us a call at (818) 238-2900 or visit us in our branch to get started today!