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When does it make sense to refinance?

Buying a new car, camper, motorcycle or boat is an exciting experience. Then you have to get down to the business of negotiating the price and arranging financing, which is not near as fun. After you take out your financing, you might realize that your dealer-arranged loan isn’t the best for you. Maybe your interest rate is higher than you want and it’s not fitting into your current budget. If that's the case, it might be time to refinance.

Here are a few things to consider when you're wondering if refinancing is a good option for you.

Your rate is not as good as you would like. It’s possible that you were in a rush to buy your pickup or boat and you didn’t look at other rates. Or maybe rates have changed since you bought your vehicle. A change in rates can make a big difference in how much money you save each month and over the life of the loan.
Your credit has improved since you got your loan. Maybe your credit score has improved and you are able to get a lower interest rate. Or you may even have discovered a mistake on your credit report and once corrected, your credit score has improved.

You need to extend your repayment term to reduce your payment. It’s possible you have 24 months left to pay on your loan, but you can refinance it for 36 months at a comparable or lower rate. This can lower your monthly payments and give you more money in your pocket each month

Everyone’s situation is different so it makes sense to talk with a loan officer to see if refinancing would be best for you. We have auto loans at 2.99% APR* and recreational vehicle loans at 4.74% APR* which you can utilize both on new loans and loans you refinance with us. When going through difficult financial times, it is a good idea to reach out to our staff to see where you can save money.

*Annual percentage rate for those who qualify. 60 month maximum term, minimum $5000 loan. Offer is good on 2013 models and newer. Not valid on existing ERFCU loans. Offer valid until June 15, 2020.

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