If someone gave you $100 with no strings attached, you would it take it, wouldn’t you? Yet every year, thousands of boat and RV owners miss the chance to take home hundreds of dollars by choosing to refinance their loans at lower rates. There are plenty of reasons to refinance your recreational vehicle loan, but here are some of the best:
Lower your monthly payment.
Refinancing your boat, motorcycle, or RV can lower your monthly payments and free up cash in your budget for other needs. Because you spend most of your money paying the vehicle loan interest in the first few years, refinancing your existing loan at a lower rate will allow you to save more cash on interest expenses.
If, however, your vehicle is too old or currently worth less than what you owe on your loan, it might be better not to refinance. To get a reliable estimate on your vehicle, you can refer to the National Automobile Dealers Association or Kelley Blue Book.
Lower your interest rate.
If you're paying for your vehicle loan at six percent interest, and other lenders are advertising interest rates for as low as three percent or half your current interest rate, you're obviously missing out on an advantageous change in the economy. Experts say that refinancing a vehicle loan should be so simple that if it lowers your rate, you should refinance.
Enjoy a shorter loan period.
If you recently got promoted or got a new job with a higher salary, you can refinance your RV loan and shorten the length of time to pay it off. Although this might increase your monthly payments, you can pay less interest and be free of debt much sooner.
Buy some time.
On the flipside, if for whatever reason you're in danger of not making your payments and defaulting on your loan, refinancing your recreational vehicle can buy you some time by extending the term of your loan—giving you time to make ends meet and save up cash for loan payments.
Refinancing your boat, motorcycle, or recreational vehicle can be the best decision you'll ever make, depending on your budget and current financial standing. Not only can you save hundreds of dollars, but you can be on your way to achieving financial freedom. For more reasons to refinance your recreational vehicle loan in Florida, contact us at WeFloridaFinancial.com.