Will Refinancing Personal Loan Lower my Monthly Payment?

February 22, 2019

Will Refinancing a Personal Loan Lower My Monthly Payment?

A personal loan is a type of loan that makes funding fairly easy to obtain and has little to no restrictions on how funding may be used. If you have already taken out a personal loan and are having trouble making payments, you could consider refinancing.

Refinancing a personal loan allows borrowers to receive lower monthly payments. Here is more information on refinancing a personal loan and how it can impact the monthly payment.

How Does Refinancing a Personal Loan Work Exactly?

Before taking the step to refinance a personal loan, it is important to know how the process works. Refinancing is a transfer of the remaining balance of an existing loan—in this case a personal loan.

In addition to the monthly payment amount, some other factors of the loan may also change. Here are the changes you might see after a personal loan is refinanced:

  • The Length of the Loan—This is how long a borrower has to repay the loan. By the end, the full amount should be paid back.
  • The Repayment Terms of the Loan—These are the terms in the contract that both you and the lender agree on before a contract is signed.
  • The Value of the Loan—This is simply the amount that the lender gives out, the more the borrower pays off with their original loan, the less amount they have to refinance.

Refinancing a Personal Loan Can Lower Your Monthly Payments with the Length of the Loan

When a personal loan is refinanced, you could acquire more time to pay back the loan or shorten the length of the loan. Borrower’s looking to lower their monthly payment usually extend the length of the loan to accomplish that.

However, it is important to keep in mind that the longer the loan, generally the more it will cost, as the interest adds up. So before extending the length of the personal loan, make sure to consider the cost, and if it is worth the lowered monthly payment.

New Repayment Terms Can Loan Lower Your Monthly Payments

The repayment terms of a refinanced personal loan will encompass a few important aspects:

  • The Minimum Amount Due— When it comes to the minimum payment amount, some lenders will have a lower requirement than others. So, switching lenders/loans could help with lowering the monthly payment amount.
  • Any Fees Associated with the Loan—Many lenders will have some kind of fee(s) associated with their personal loans, and some may have more fees than others. Refinancing a personal loan by switching lenders can have a huge impact on any additional payments that are added to the monthly loan payment.
  • The Interest Rate of the Loan—The interest of the personal loan will make up a huge part of the monthly payment. When refinancing a personal loan, a change in the interest rate is another huge advantage that can come from the process.

This can occur if you are able to find a new lender who has a much more competitive interest rate, or if you are able to refinance with better terms, through their existing lender.

Changing up the repayment terms can definitely help lower the monthly payment of the loan.

How Your Credit Score Can Impact Whether Refinancing Will Lower Your Monthly Payment

You credit score and finances will play another important role in determining whether refinancing your personal loan will be worth it.

Generally, the better ones financial standing and credit score, the more beneficial refinancing will be for them.

This is because those with better credit typically receive better rates and repayment terms with a personal loan. Having better terms also means receiving a lower monthly payment when compared to borrower with poor credit.

Can MaxCash Help Lower My Monthly Payment When Refinancing a Personal Loan?

At MaxCash, we have tons of experience with refinancing all types of loans—even personal loans. Instead of giving out loans ourselves, we work with several lenders. Because of this, we can offer our customers tons of unique advantages with the lending process:

  • We offer extended hours throughout the week and weekend.
  • Our lenders could offer competitive interest rates.
  • We could work with all kinds of finances.
  • We can help throughout the personal loan refinance process.

If you have a personal loan and want to lower your monthly payment, consider personal loan refinancing. There are a few ways in which refinancing a personal loan can lower the amount you pay every month. Before deciding to choose this route, it is important to understand that refinancing is usually only beneficial for those who currently have good credit/finances.

DISCLAIMER:
The MaxCash website does not offer or provide loans, but rather, it offers a service. It should not be construed as a lending agent or broker. The site does not endorse any lenders and does not charge visitors any fees. The website owners do not evaluate potential lenders’ applications, nor do they approve or deny credit. The MaxCash website does gather applicants’ personal information and transmits it to lenders that are part of the site’s lending network. No one is required to make use of this website, nor are they under any obligation to begin contact with site operators or to attempt to secure a loan with any of the site’s lending partners. Transmission of your financial and personal information on the website in no way obligates lenders to offer you a loan or any other kind of credit product. Be aware that cash transfer times can vary, depending on the lender and the bank you use. It may be necessary to fax information under certain circumstances. All questions about loans, and any concerns you may have should be directed to your lender. These loans are intended as short-term financial solution to satisfy borrowers’ needs for immediate monetary relief. This is not intended to be part of a long-term financial plan for individuals. These services are not offered in all states. Potential borrows may undergo credit check if lenders choose to use any of the major credit reporting bureaus, including Equifax, Trans Union and Experian. They may also use other alternative sources to check credit ratings. Your request for a loan constitutes your agreement and acknowledgement that (A) your personal data may be shared with lenders and perhaps other third-party partners, and (B) lenders can acquire credit bureau reports that detail your credit history. Reports from major credit bureaus, such as Equifax, Experian and TransUnion may be obtained and used to evaluate your reliability as a borrower.

1Loan amounts by the lenders vary based on qualifications.

2Since we do not lend money directly we cannot offer you a solicitation for a loan. In all serviced states we WILL match you with a lender based on the information you provide on this website. We will not charge you for this service and our service is not available in all states. States that are serviced by this Web Site may change from time to time and without notice. Personal Unsecured Loans are not available in all states and all areas.

3Loans such as, Auto Title Loan companies typically do not have pre-payment penalties, but we cannot guarantee that every lender meets this standard. Small Business Loans typically do have pre-payment penalties and occasionally will use your car as collateral to secure the loan. Other types of loans may have pre-payment penalties as well.

4All lenders are responsible for their own interest rates and payment terms. Max Cash has no control over these rates or payments. Use of the work competitive or reasonable does not mean affordable and borrowers should use their own discretion when working directly with the lender.

5The amount of people who applied for a loan and we helped and those who received a loan is not the same. We cannot guarantee we will find a lender who will fund you. Just because you give us information on this web site, in no way do we guarantee you will be approved for a car title loan or any other type of loan. Not all lenders can provide loan amounts you may see on this web site because loan amounts are limited by state law and/or the lender. Some lenders may require you to use a GPS locator device on your car, active all the time, in the circumstance for an auto title loan. They may or may not pay for this or charge you for this. This is up to the lender and we have no control over this policy of the lender. Typically, larger loans or higher risk loans use a GPS.

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Loans such as Car Title Loans are expensive and you may have other ways to get funding that is less expensive. These types of loans are meant to provide you with short term financing to solve immediate cash needs and should not be considered a long-term solution. Residents of some states may not be eligible for a loan. Rejections for loans are not disclosed to our firm and you may want to contact the lender directly.

Signature and personal loans are only available in Georgia and Florida. Loan amounts differ at locations. Account approval requires satisfaction of all loan eligibility requirements, including a credit inquiry, and, if applicable, motor vehicle appraisal.

Car Title Loan lenders are usually licensed by the State in which you reside. You should consult directly with these regulatory agencies to make sure your lender is licensed and in compliance. These agencies are there to protect you and we advise making sure any lender you receive money from is fully licensed.

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