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Looking to refinance your auto loan? Discover the states with the best and worst rates.
If you’d like to refinance your vehicle and possibly save some money on your auto loan each month, you may wonder how the interest rates are in your state. After all, the lenders and financial institutions that offer auto refinancing are region specific.
Interest rates in Ohio, for example, will likely be different than in California. But what states offer the best and worst interest rates? We’re here to tell you. RateGenius analyzed over half a million auto loan refinancing applications in 2020 to uncover where borrowers secured the best and worst rates. Below, we’ll explore our findings.
When you refinance your auto loan, you replace your current loan with a new one. The new loan will pay off your old loan and you’ll have an entirely new loan agreement with a new interest rate and term. By refinancing, you may enjoy a lower interest rate and reduce your monthly payment. You can also switch to a better lender who is more lenient or offers special discounts.
If you’d like to move forward with auto loan refinancing, you’ll need to meet certain criteria, which varies from lender to lender. However, lenders typically look at factors like your loan-to-value ratio,credit, and debt-to-income ratio.
Your credit score, the term length of your loan, and the age of your car will all have an affect on the interest rate you receive. Where you live will impact it as well. Your location matters because interest rates vary from state to state and lenders need to offer low rates in your region.
But why are interest rates so important? Your interest rate will impact how much you’ll have to pay to borrow the principal of the auto loan. It will also influence your car payments every month. A lower interest rate can mean lower payments and thousands of dollars in savings.
If you’re able to lock in a lower interest rate through car loan refinancing, you may significantly reduce the overall cost of your loan. A more affordable auto loan can free up your monthly cash flow and allow you to own your car faster.
These states offer the best interest rates for auto loan refinancing and may save borrowers who live in them a lot of money on their car loans.
These states have the worst interest rates on their original auto loans, making their loans more expensive. By refinancing their loans, borrowers in these states saved $1,000 or more every year.
No matter where you live, car loan refinancing can likely reduce the cost of your car loan. Depending on the interest rate you receive, you can save thousands of dollars in interest over the lifespan of the loan. If you decide to refinance, do your research and shop around to find the very best rate for you.
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