As the leaves begin to change and the air turns crisp, fall brings more than just pumpkin spice lattes and cozy sweaters. It’s also the perfect time to reassess your finances, particularly your auto loan. Refinancing your car loan during autumn with Members Exchange Federal Credit Union (MEFCU) can offer significant benefits, potentially saving you money and improving your financial outlook before the year ends.
What is Auto Refinancing and the Types MEFCU Offers
Auto refinancing involves taking out a new loan to pay off and replace your existing car loan. After refinancing, you begin making payments on the new loan, which typically offers a lower interest rate or different repayment terms. This process can help reduce your monthly payments, lower the total interest you pay over time, or adjust the loan to better fit your budget.
There are several types of auto refinancing:
- Rate-and-Term Refinance: Adjusts the interest rate, loan term, or both to lower payments or reduce total loan costs.
- Cash-Out Refinance: Allows you to borrow more than what you owe, using your car’s equity to secure extra funds.
- Cash-Back Refinance: Similar to cash-out, but provides money upfront for other expenses.
At Members Exchange Credit Union (MEFCU), we specialize in rate-and-term refinancing, helping members lower interest rates, extend loan terms, and reduce monthly payments—ultimately improving financial flexibility.
Is Fall a Good Time to Refinance an Auto Loan?
Yes, fall is an opportune time for auto loan refinancing. if you’ve made consistent payments throughout the year, your credit score may have improved, qualifying you for better loan terms. Many lenders, including Members Exchange, offer competitive rates this season as they aim to meet year-end goals. MEFCU’s auto refinancing rates currently start between 4.49% and 6.49%, depending on the term, giving members the opportunity to lock in lower payments.
Benefits of Refinancing Before Year-End
Refinancing your auto loan in the fall offers several advantages:
- Lower Interest Rates: If market rates have dropped, you could secure a lower rate and reduce the cost of your loan. At MEFCU, rates for new and used vehicles start as low as 4.49% APR for terms up to 24 months.
- Reduced Monthly Payments: A lower interest rate or extended loan term can decrease your monthly payments, freeing up cash for other expenses or savings.
- Improved Cash Flow: With potentially lower payments, you’ll have more flexibility in your monthly budget, which can be especially helpful during the holiday season.
It’s important to consider the pros and cons of auto refinancing before deciding if it’s the right move for you. At Members Exchange, we offer competitive rates for auto loan refinancing with terms up to 84 months, along with flexible options tailored to your financial situation.
How to Qualify for Lower Rates at a Credit Union
To qualify for the best rates at MEFCU:
- Check Your Credit Score: A higher credit score typically leads to better loan terms. Review your credit report for any errors and work on improving your score if needed.
- Maintain a Steady Income: Lenders want to see stable income to ensure you can make payments.
- Keep Your Debt-to-Income Ratio Low: NerdWallet suggests aiming for a debt-to-income ratio below 50% to 60% for the best chances of approval.
- Consider the Loan-to-Value Ratio: Ensure your car isn’t worth significantly less than what you owe.
When applying to refinance, you’ll also need to provide documentation, including proof of income, vehicle information (VIN, make, model, year, mileage), current loan details, proof of insurance, and your driver’s license. MEFCU’s streamlined application process makes it easy to apply online or visit a branch for personalized assistance.
How Refinancing Can Lower Monthly Payments
Refinancing can reduce your monthly payments in two primary ways:
- Lower Interest Rate: If you qualify for a lower rate, more of your payment goes toward the principal, potentially lowering your monthly obligation.
- Extended Loan Term: Lengthening your loan term can spread payments over a longer period, reducing the monthly amount. However, be aware that this may increase the total interest paid over the life of the loan.
Maximize Fall Auto Loan Refinancing Savings with MEFCU
Don’t let the opportunity to improve your financial situation pass you by this autumn. Refinancing your auto loan with Members Exchange Federal Credit Union can lead to significant savings and improved cash flow. Our team is ready to help you explore your options and find the best solution for your needs.
Contact us today to learn more about how we can help you save on your auto loan this fall. With our competitive rates and member-focused approach, we’re here to help you drive into the new year with improved financial health. For more information, explore our latest blogs, or call us at (601) -922-3350 or toll-free at 1-800-748-9459. Your financial security is our priority.
