Navy Federal Auto Loan Refinance Calculator
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Reviewed by Calculator Editorial Team
Refinancing your Navy Federal auto loan can help you save money by taking advantage of lower interest rates or extending your loan term. This calculator helps you estimate your potential savings and new monthly payment when refinancing your auto loan with Navy Federal.
How to Use This Calculator
To use this Navy Federal auto loan refinance calculator, follow these steps:
- Enter your current loan amount in the "Current Loan Amount" field.
- Enter your current interest rate in the "Current Interest Rate" field.
- Enter your current loan term in years in the "Current Loan Term" field.
- Enter your desired new interest rate in the "New Interest Rate" field.
- Enter your desired new loan term in years in the "New Loan Term" field.
- Click the "Calculate" button to see your estimated savings and new monthly payment.
The calculator will display your estimated monthly payment with the new loan terms, your total interest paid over the life of the loan, and your total amount paid.
Formula Used
The calculator uses the standard auto loan payment formula to calculate your monthly payment:
Monthly Payment = P * (r(1 + r)^n) / ((1 + r)^n - 1)
Where:
- P = Principal loan amount
- r = Monthly interest rate (annual rate divided by 12)
- n = Number of payments (loan term in years multiplied by 12)
The calculator then compares the new payment to your current payment to estimate your savings.
Worked Example
Let's say you have a $20,000 auto loan with a 5% interest rate and a 5-year term. You want to refinance to a 4% interest rate with a 6-year term.
Using the calculator:
- Enter $20,000 as your current loan amount.
- Enter 5% as your current interest rate.
- Enter 5 as your current loan term.
- Enter 4% as your new interest rate.
- Enter 6 as your new loan term.
- Click "Calculate".
The calculator will show that your new monthly payment would be approximately $324.60, compared to your current payment of $358.65. This means you would save about $34.05 per month by refinancing.
Key Considerations
Interest Rates
Lower interest rates can significantly reduce your monthly payment and total interest paid. However, interest rates can fluctuate, so it's important to lock in a rate if you plan to refinance.
Loan Terms
Extending your loan term can lower your monthly payment but will result in paying more interest over the life of the loan. Shortening your loan term can increase your monthly payment but will save you money on interest.
Fees and Costs
Refinancing your auto loan may involve fees such as application fees, origination fees, and closing costs. These fees can affect your overall savings.
Credit Score
Your credit score can impact the interest rate you qualify for. A higher credit score can help you secure a lower rate and better terms.