Things to Consider Before Refinancing a Title Loan
What should you consider before refinancing a title loan? If you currently find it difficult to keep up with the title loan terms you have been given, you may want to consider refinancing your title loan. Max Cash® could help you get the process started.
Before starting the process to refinance your title loan, there are a few details you may want to consider.
Why Refinance a Title Loan?
Refinancing is essentially taking out a new loan with a different lender in order to pay off an existing one. Why do this, though? Refinancing can offer borrowers desirable benefits, take a look:
- Lower interest rate
- Lower monthly payment
- More time to pay your loan back
- Higher monthly payment for a shorter loan duration
In some cases, borrowers decide to opt for a higher monthly payment because they will be able to pay off their loans much more quickly.
How Does Refinancing Work?
Refinancing is the process of taking out a new loan with new terms to pay off one that is currently being paid back.
There are a couple of different ways that this can work. Your refinancing lender may go to your current lender and pay off your existing loan without you having to lift a finger. More often than not, however, your lender will write you a check for the amount of money that you still owe to pay off the old lender yourself.
From there, you will start paying back your new lender rather than the old one with the new terms that you have set up.
What to Consider Before Refinancing a Title Loan?
There are several different things that you should take into consideration before you go forward with the process of refinancing your title loan.
Depending on what lender you are currently with, you could end up getting charged a penalty fee for pre-payment. Lenders make their money off the interest they charge on a loan, so if they do not get the chance to accumulate interest, they make no money. As a result, some lenders have resorted to charging pre-payment penalty fees to make up the difference. That said, make sure that you won’t be losing money as a result of refinancing your car title loan.
Furthermore, it is best if you have your vehicle fully paid off. Although some lenders will be willing to work with you despite not having paid off your vehicle yet, you will have a better chance of getting a good refinancing deal if the vehicle whose title you are putting up as collateral is free and clear.
Refinance Your Current Title Loan with Max Cash!
When going to refinance your title loan, do not put yourself through the strain and hassle of going from lender to lender on your own. Let someone else do all the legwork for you—like Max Cash!
Max Cash has spent years building relationships with reputable title loan lenders in the industry. We know how to negotiate and strive to help customers gain better financial health immediately!
Speak with Max Cash Right Now!
If you have decided that refinancing your current title loan absolutely sounds like the thing for you, get in touch with Max Cash! We have knowledgeable agents at the ready. Don’t look for lenders on your own, allow us the opportunity to help you find an affordable loan.5
All you have to do to take that first step is to reach out to Max Cash by:
- Calling us toll-free at (855) 561-5626.
- Emailing us at info@maxcash.com.
- Visiting our headquarters office located at 1270 E. Broadway Rd., Suite 101a, Tempe, AZ 85282.
