REFINANCING YOUR RV

How Can Refinancing Affect Your Finances?

When you refinance an RV, you replace your current RV loan with a new one of different terms. In practice, RV refinancing is the process of paying off your current RV loan with a new one, usually from a new lender. This process can have different outcomes for different RV owners. So, before refinancing, make sure you understand you motivations for refinancing and the outcomes you are seeking.

Most people refinance to save money. But this goal can mean different things to different people. Some wish to lower their monthly payments. Others want to reduce their interest rates or adjust their loan term lengths. Still, others have more personal reasons to refinance, such as removing co-signers from their loans. No matter what is motivating you to consider refinancing your RV, it is important that you understand the possible outcomes of refinancing.

POSSIBLE rv REFINANCING OUTCOMES

Not all RV loan refinance deals are the same, but refinance customers often seek one of the following outcomes.

Lower Your Monthly Payments

Most of the time, people seek RV loan refinancing to lower their monthly payments. This priority is understandable because monthly loan payments can have an immediate impact on a household's monthly finances. However, your monthly payment should not be your only consideration when refinancing.

You have two ways to lower your RV loan monthly payments. You can get a lower interest rate, you can extend your loan term, or you can do both. Usually, the best way to lower your RV loan payments dramatically is to extend the number of months over which you pay for your RV. However, when you extend your loan term, you may end up paying more for your RV in total than you would without extending it. Still, if your lender allows you to extend your loan term and gives you a lower interest rate, you may both lower your monthly payments and pay less in total for your RV. 

Decrease Your Interest Rate/Reduce Your Interest Charges

While it is interrelated with the goal of lowering monthly payments, some refinance customers prioritize lowering the interest rates on their loans. If during the course of your RV loan, you improve your credit worthiness in the eyes of lenders (they sometimes evaluate you according to the Four C's of Credit, then you usually can get a new loan on your RV with a lower interest rate, and when you lower your interest rate you may reduce the total interest charges you pay on your loan - assuming your loan term is not extended or not extended by too many months.

Change The Length Of Your Loan

Sometimes refinance customers seek refinancing with an aim to change their loan term lengths. However, this goal usually has more to do with lowering monthly payments than just changing how many months over which a customer pays for his/her RV.

Remove Or Add Someone As A Co-Signer To Your Loan

For various personal reasons, sometimes RV loan borrowers want to refinance to remove or add someone to their RV loans. Refinancing is an easy way to take someone off of your RV loan because the refinance process gives you a new loan with a new contract.

Will Refinancing Benefit you? 

Refinancing can benefit a borrower, you should note that refinancing can have various impacts on a person's finances. When and if you choose to refinance, you may or may not change the length of your loan, and your interest rate does not necessarily have to change - although most of the time it will. Most of the time, refinance customers want to at least reduce their monthly payments, but sometimes customers have different priorities when refinancing. The point is that every RV refinancing deal is different and every refinance customer has a personal reasons to refinance. For this reason, you can benefit greatly when you work with a Finance Manager that takes the time to learn about your needs and will match you with a better RV loan than you already have.

Contact our Financial Services Manager to find out the benefits of refinancing your RV