Refinance Your Motorcycle Loan
If you are looking for a way to refinance a motorcycle loan, there are lenders and institutions that are available that will assist you in accomplishing this. Refinancing a motorcycle loan provides a way for a borrower to lower their interest costs and take advantage of lower interest rates.
Lenders Offering Motorcycle Loans
The motorcycle loan is considered to be a specialty loan. Lenders and specialty shops that underwrite motorcycle loans and understand the nature of motorcycle financing offer this type of loan. This provides a narrow group of lenders in which a borrower can go to in order to refinance their loan. This provides some opportunities for borrowers who are seeking consolidation. This is due to the level of competition that is created to attract borrowers and provide them with loan options for refinancing.
Determining Cost Savings
Borrowers that desire to refinance loans should begin the process by determining the amount of savings that will be derived. A 48-month, $20,000 motorcycle loan that was made at 9 percent results in a monthly payment of $498 and a total loan payment of $23,890. Having the ability to lower the interest through refinancing from 9 percent to 6 percent results in a monthly payment reduction of $28 and a total loan reduction of $1,344. This shows that refinancing may provide a huge advantage for a borrower.
Shopping for Rates
Because of the limited pool of lenders who specialize in motorcycle loans, a borrower should shop around to obtain the best loan rates, terms and conditions. A borrower may be in a good position to qualify for a no or low-fee loan to refinance their existing motorcycle loan based on their credit rating. Although it is possible to obtain a motorcycle loan refinancing for a borrower with bad credit, the terms may not provide any additional advantage over the existing motorcycle loan.
Use Loan Comparison Software
A spreadsheet program or loan comparison software that can be found online will assist the borrower in comparing the terms and rates between an existing loan and the offers that are being made by several lenders. Obtaining at least 3 quotes allows the borrower enough variety to come across a loan that is best for their situation.
Borrowers who are looking to save money and lower their monthly payments should consider motorcycle loan refinancing. Because not all loans are equal, a borrower should shop carefully and work with lenders that specialize in motorcycle loans and are eager to compete for the loan. Comparing loan terms and determining the loan with the best offer will make the refinancing process better for both parties.