Navigating Kia finance options can be daunting, especially when managing your budget. At Folsom Lake Kia, we offer a straightforward path to refinancing your car loan that can lower your monthly payments and reduce interest over the life of the loan. Here’s how refinancing works and how to make the most of it.
Understanding Your Current Loan
Refinancing a car loan involves replacing your current car loan with a new one, usually with a lower interest rate. The first step is to review your current loan to understand your interest rate and monthly payments. This information can generally be found on your loan documents or by contacting your current lender.
Check Your Credit
Checking your credit score is an essential step of refinancing, since a higher score will qualify you for better rates. Once you know your credit standing, check with multiple lenders to compare estimated offers. This approach ensures you get the best rate possible.
Choose Your Loan Terms
When comparing offers, consider both the interest rate and the loan term, which affect your monthly payments and the total interest paid. A shorter term means higher payments but less interest overall, whereas a longer term will have lower monthly payments but more interest over the long run.
Considerations Before Refinancing
Check if any prepayment penalties on your current loan could affect your refinancing. Additionally, if your loan amount is higher than the value of your car or if your vehicle is older, refinancing might require you to pay out of pocket.
Refinance with Our Kia Finance Team Near Sacramento, CA
At Folsom Lake Kia, our finance experts are dedicated to helping you refinance your car loan. Our team near Sacramento, CA, is here to answer any questions you have!
