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Refinancing can also lead to paying off your loan early. If your income has increased since taking out your auto loan, it may be a good time to refinance to a shorter term.
Paying off a car loan early can save you money — provided the lender doesn’t assess too large a prepayment penalty and you don’t have other high-interest debt. Even a few extra payments can ...
Paying off your car loan early can earn you much-needed financial freedom and save you potentially hundreds (or thousands) of dollars in would-be interest. ... You could potentially refinance at a ...
Refinancing a car works similarly to refinancing a mortgage. You need to apply for a new loan, get approved by the lender, and then pay off the original loan with the new loan.
Individual borrowers who expect to prepay their loans early should generally favor a combination of lower principal balance and higher interest rate (which stops accruing after prepayment), rather than a below-market interest rate and higher principal balance (which much be paid in full, regardless of prepayment).
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