Cal11 calculator
Search calculator...

Arvest Auto Refinance Calculator

Reviewed by Calculator Editorial Team

Use this Arvest Auto Refinance Calculator to determine your potential savings when refinancing your auto loan. By comparing your current loan terms with Arvest's refinancing options, you can make an informed decision about whether refinancing is beneficial for your financial situation.

How to Use This Calculator

To use the Arvest Auto Refinance Calculator, follow these simple steps:

  1. Enter your current auto loan balance in the "Current Loan Balance" field.
  2. Input your current interest rate in the "Current Interest Rate" field.
  3. Specify the remaining term of your current loan in the "Current Loan Term" field.
  4. Enter the new interest rate offered by Arvest in the "New Interest Rate" field.
  5. Select the desired loan term for the refinanced loan.
  6. Click the "Calculate" button to see your potential savings.

The calculator will display your estimated monthly payment for both your current loan and the refinanced loan, along with the total interest paid over the life of the loan and your potential savings.

Formula Used

The Arvest Auto Refinance Calculator uses the standard loan payment formula to calculate monthly payments and total interest:

Loan Payment Formula

Monthly Payment = P × (r(1 + r)^n) / ((1 + r)^n - 1)

Where:

  • P = Loan principal (current loan balance)
  • r = Monthly interest rate (annual rate divided by 12)
  • n = Number of payments (loan term in months)

Total Interest Paid = (Monthly Payment × n) - P

Potential Savings = (Current Total Interest) - (Refinanced Total Interest)

Worked Example

Let's look at an example to illustrate how the calculator works. Suppose you have a current auto loan with the following details:

  • Current Loan Balance: $20,000
  • Current Interest Rate: 6.5% APR
  • Current Loan Term: 60 months (5 years)

Arvest offers you a refinanced loan with the following terms:

  • New Interest Rate: 4.5% APR
  • New Loan Term: 60 months (5 years)

Using the calculator, you would enter these values and click "Calculate". The results would show:

Metric Current Loan Refinanced Loan
Monthly Payment $362.26 $308.76
Total Interest Paid $1,335.60 $854.60
Potential Savings $481.00

In this example, refinancing with Arvest would save you $481 over the life of the loan while reducing your monthly payment by $53.50.

Frequently Asked Questions

How does refinancing my auto loan work?
Refinancing your auto loan involves replacing your current loan with a new one, typically with better terms. You'll need to meet credit requirements and may need to pay closing costs, but you can often secure lower interest rates and better repayment terms.
What are the benefits of refinancing my auto loan?
The primary benefits include lower monthly payments, reduced total interest paid, and potentially saving money over the life of the loan. Refinancing can also help you access equity in your vehicle if you have a low balance.
What factors affect the interest rate I can get when refinancing?
The interest rate you qualify for depends on your credit score, the loan-to-value ratio, your income, and the market conditions. Lenders typically offer lower rates to borrowers with strong credit histories and lower loan-to-value ratios.
Are there any fees associated with refinancing my auto loan?
Yes, refinancing typically involves closing costs such as origination fees, appraisal fees, and title fees. These costs can vary depending on the lender and the type of loan. It's important to factor these costs into your decision.