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Auto Loan Refinance Calculator

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Auto Loan Refinance Calculator

Check the refinance calculator to see what you could be saving on your auto loan payments

An auto loan refinance calculator is a great tool if you are like me and get many auto loan refinance offers in the mail. Interest rates guaranteed to be lower by at least so and so percent. Is it worth it to refinance your car? How much can you actually save if the interest is lowered on the loan? These are just come questions that come into mind when given the opportunity of refinancing you auto loan.

One way to see if how much you will be saving is by using an auto loan refinance calculator. It is easy to find these calculators on the web.

The information you need in order to see what your new rate will be is as followed: the amount of the original loan, the term of the original loan, your monthly payment, number of payments you have already made, and the interest rate of the new loan. After you plug in all of this information in the auto loan refinance calculator you will see how much you will save if you take the option of refinancing.

Let us look at an example of how much you will save. Let's say you bought a car at $20,000 ($450 a month for 60 months). You already made 10 payments and are offered a lower interest rate of 5.8% if you refinance your auto loan.

According to the auto refinance calculator you still need to pay off $5,032.48 of interest with your current loan, however if you choose the refinancing offer you will be lowering your monthly payments to $394.10, and need to pay off $2237.56. As you can see you will be saving approximately $55.90 a month, which does not seem like a huge amount, but over time you will be saving $2794.92 on interest.

Auto refinancing calculators can come in handy when trying to decide if you should refinance your car or not. Just a note: Often there are closing costs involved with refinancing, so you will need to have a little cash on hand to refinance your vehicle loan.

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