On one hand the ability to lower the interest rate, payment, and total loan cost on an existing title loan can be a big help, especially for borrowers who rushed into a loan with a very high interest rate.
On the other hand refinancing a title loan is not permitted in all states and therefor not available to all borrowers. Nevertheless, if you have an existing title loan with a payment that is not affordable it may be a good idea to consider a title loan refinance.
So the answer to can you refinance a title loan?’ is yes, assuming you reside in a state that permits these and you can meet the requirements for doing so. We’ll cover those shortly, first, what factors are there to consider when refinancing a title loan?
Factors for Refinancing a Title Loan
Borrowers may want to consider refinancing their loan for a number of reasons which we’ll cover shortly. So what factors are considered by the lender when entering such a transaction?
Vehicle Information
The first item to consider is the vehicle value. As with all title loans vehicle value is an integral part of determining the loan amount.
The good news for borrowers is that used car values have increased significantly over just the past year. This play a major role in how much you can borrow; if refinancing for a larger amount then this may be very important.
Existing Loan Details
- Existing loan amount
- Term (Length)
- Payment history
- Current standing
- Outstanding balance
By current standing we mean whether or not you are currently in good standing with the lender. This means you are up to date on all payments and http://availableloan.net/installment-loans-mn/rushmore/ meeting all terms and conditions spelled out in the loan agreement. If this is not the case it may be difficult to refinance the loan.
Refinancing Requirements
The final item to consider is your requirements for refinancing. Obviously one requirement should be a lower payment and ultimately a lower total loan cost.