Navy Federal Refinance Auto Loan Calculator
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Reviewed by Calculator Editorial Team
Refinancing your auto loan through Navy Federal Credit Union can help you save money over time by taking advantage of lower interest rates. This calculator helps you determine whether refinancing is a good financial decision for your specific situation.
How to Use This Calculator
To use the Navy Federal Refinance Auto Loan Calculator, follow these steps:
- Enter your current auto loan balance in the "Current Loan Balance" field.
- Enter your current interest rate in the "Current Interest Rate" field.
- Enter the remaining term of your current loan in the "Remaining Loan Term" field.
- Enter the new interest rate you would get with Navy Federal in the "New Interest Rate" field.
- Enter the term you would like for your new loan in the "New Loan Term" field.
- Click the "Calculate" button to see your potential savings.
The calculator will display your estimated monthly payment under the new terms, the total interest you would pay, and the total amount you would pay over the life of the loan.
How Refinancing Works
Refinancing your auto loan involves replacing your current loan with a new one, typically with better terms. When you refinance through Navy Federal Credit Union, you can take advantage of their lower interest rates and potentially save money on your monthly payments.
The process usually involves:
- Applying for a new auto loan with Navy Federal Credit Union.
- Paying off your current auto loan.
- Receiving the new loan funds.
- Using the new loan to pay off your current auto loan.
It's important to note that refinancing may not always be the best financial decision, as it can involve fees and may not always result in significant savings.
Benefits of Refinancing
Refinancing your auto loan through Navy Federal Credit Union can offer several benefits, including:
- Lower interest rates: Navy Federal Credit Union often offers lower interest rates than traditional lenders, which can save you money over time.
- Reduced monthly payments: With lower interest rates, your monthly payments may be lower, freeing up more of your budget.
- Potential savings: Depending on the terms of your current loan and the new loan, you may save thousands of dollars over the life of the loan.
- Improved credit score: Paying off your current loan and taking out a new one can help improve your credit score.
However, it's important to consider the potential drawbacks of refinancing before making a decision.
Important Considerations
Before refinancing your auto loan, consider the following factors:
- Fees: Refinancing may involve fees, such as application fees, origination fees, and closing costs. Make sure to factor these into your decision.
- Time: Refinancing can take time, and you may not be able to drive your current car while the process is underway.
- Credit score: Refinancing can impact your credit score, both positively and negatively. Make sure you understand how it will affect your financial situation.
- Loan terms: Make sure you understand the terms of the new loan, including the interest rate, loan term, and any fees or penalties.
It's always a good idea to consult with a financial advisor or credit counselor before making a decision about refinancing your auto loan.
Worked Example
Let's look at an example to see how refinancing through Navy Federal Credit Union could save you money.
| Current Loan | New Loan |
|---|---|
| Loan Balance: $20,000 | Loan Balance: $20,000 |
| Interest Rate: 8% | Interest Rate: 4% |
| Loan Term: 60 months | Loan Term: 60 months |
| Monthly Payment: $389.74 | Monthly Payment: $333.33 |
| Total Interest: $1,778.40 | Total Interest: $800.00 |
| Total Amount Paid: $21,778.40 | Total Amount Paid: $20,800.00 |
In this example, refinancing through Navy Federal Credit Union would save you $978.40 in interest over the life of the loan.
Frequently Asked Questions
- How long does it take to refinance an auto loan?
- The time it takes to refinance an auto loan can vary, but it typically takes between 7 and 30 days, depending on the lender and your individual circumstances.
- Can I refinance my auto loan if I have bad credit?
- It may be more difficult to refinance an auto loan if you have bad credit, but it is not impossible. Some lenders specialize in working with borrowers who have less-than-perfect credit.
- Will refinancing my auto loan hurt my credit score?
- Refinancing your auto loan can impact your credit score, both positively and negatively. Closing your old account can help improve your credit score, but opening a new loan can temporarily lower it.
- Are there any fees associated with refinancing an auto loan?
- Yes, there may be fees associated with refinancing an auto loan, such as application fees, origination fees, and closing costs. Make sure to factor these into your decision.
- Can I refinance my auto loan if I'm behind on payments?
- It may be difficult to refinance an auto loan if you're behind on payments. Make sure to catch up on any missed payments before applying for a new loan.