It’s tough to try to refinance an upside down car loan, but it can be done. Being “upside down” simply means that the amount owed on the loan exceeds the value of the vehicle, and since the automobile is usually what’s used to secure the loan in the first place, lenders are reluctant to refinance an upside down borrower.
Pittsfield, MA -- (SBWIRE) -- 03/04/2013 -- When looking into upside down car loan refinance, one may be able to obtain the refinance if one agrees to hold onto the loan for a longer period of time. For instance, one can go from a 3-year term to a 5-year term. Being willing to extend the term makes a lender more inclined to approve the refinance, so work with him toward that end.
Credit-yogi.com has looked into how to get the refinancing one needs in spite of being upside down and will now share some of its research, including:
- Extending Loan Terms
- Paying Attention to Rates
- Information the Lender Needs
- Shopping Lenders
Check the Interest Rates
Know what the most recent interest rates are. In many situations, one can negotiate the rate. The lower the interest rate, the easier it is to refinance an upside down car loan. One can narrow one’s research field by inputting one’s zip code, or he can go online to compare rates between many lenders. Obtaining the interest rate information can help in the refinancing negotiations.
To Refinance Car Loan Upside Down, Apply Here
What Lenders Need to Know
Lenders that can refinance a car loan despite it being upside down need to be assured that a person can handle making his payments. They will ask for at least 2-4 weeks of pay stubs and a year or two of income tax returns to feel secure in approving the loan refinance. If the lender he’s dealing with is a different one from the original lender, a person will have to know how much is owed on the current loan in order to refinance it.
Check out Different Lenders
The best place to start looking into how and where to refinance an upside down car loan is with one’s original lender. Often, due to the history one has with that financer, the original lender will try to accommodate a borrower. However, sometimes that is just not possible for various reasons. It’s a good idea to compare several lenders for interest rates, term lengths, and other pertinent information to get the best refinance loan.
Credit-yogi.com is a caring, free consumer resource website located in Pittsfield, Massachusetts that links folks who have questions about the law or money with the experts who have the answers. To obtain a complimentary consultation, dial 866-964-9644.