National bank Wells Fargo offers numerous automobile refinancing and cash out options and products to consumers, regardless of where they originally borrowed the money from. They are one of the few major lenders or banks that can both refinance your existing auto loan, or allow you to cash out on it. So they can in effect lend you additional money at an often competitive interest rate as part of the car loan refinancing process. Those customers who have refinanced their automobile loans using products from Wells Fargo received just under $5,000 when they cashed out.
What the bank does is it requires that the borrower apply for a new car loan in order to pay off their existing note on the vehicle in question. When they apply for and are granted the new loan from Wells Fargo, the borrower will receive cash above and beyond the value of the existing car that they own. Usually the bank will refinance auto loans for up 160% of the vehicle’s value, and this is the cash out component.
The lender has found that many people apply for this loan product who want a lower monthly interest rate, which will save families a significant amount of money over time. Thousands of people use this service each month, and therefore receive a lower monthly payment on their car loan. As the fact of the matter is that automobile refinance loans that come with lower interest rates mean that the borrower will be paying less overall on their monthly payments.
When someone is buying a care, Wells Fargo has also found that many dealers charge buyers an interest rate that is too high, and that most people will qualify for better terms and a lower interest rate than when they originally financed their vehicle from a dealer. This is true for both new and used cars.
Some borrowers also decide on the cash out option. People usually consider this when they want to pay off other bills, emergency expenses, or consolidate other debts. For example, if a consumer is paying 15% interest on a credit card account that they have, and they can borrow or receive extra cash on their car loan from Wells Fargo at say a 6% interest rate, they can use the money they are borrowing at 6% to pay off or reduce the amount of their credit card debts. So it is in effect a form of consolidation, and it will save people a significant amount of money in the process. So a borrower can pay off higher rate debts, and also lower their existing monthly car payment.
Another reason, while not as common, is that with a cash out refinance auto loan the borrower may be able to skip the next month's payment that is due. However this is usually dependent on the date when you close the refinance loan with the extra cash and another key factor is the next auto loan payment due date.
As with any loan product that individuals take out, not all borrowers are charged the same interest rate and receive the same terms, so not all will qualify for the same refinance interest rates. This is due to a few reasons, and the primary one being that because one of the biggest influences on an automobile loan refinance interest rate that is charged to consumers is the borrower’s credit rating or scores.
Interest rates and loan terms will vary, but this is true for almost all funds people take out from any bank, whether they are buying a home, car, or applying for a credit card. But in general, the better the applicants credit score and ratings, the lower the automobile refinance rate they will be charged. Other factors that usually come into consideration from Wells Fargo include the age of the vehicle, the make and model of the car, the mileage and loan-to-value (LTV) ratio, and the resell value also help determine the auto refinance rates offered to a customer.
The terms of deals offered from Wells Fargo for any new loans include refinance terms that generally range from 12–72 months. However, most advocates will recommend against borrowing up to 6 years for a new or used car, so be aware of that. Also, the longer the length of your loan, usually the higher interest rate you will be charged. That being said, competitive rates, which are usually lower than dealer rates, are often provided to applicants as well. They usually provide a decision within minutes of applying. Some loans can even be closed out the same day.
To learn more, or to apply for an auto loan, to cash out or explore any refinancing from Wells Fargo, call the lender at 1-877-246-1015.
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