You can also look into auto loan modification

Some might think you are able to only get loan modification on mortgages. That is not true. You can refinance your auto loans, too. This would be the opportune moment, as it were, to refinance a auto loan as auto loans are actually quite cheap these days. Auto loans can be low interest loans too. They don’t have to be expensive.

Mortgage loans are not the sole loans which can be refinanced

You can refinance a car loan just like you are able to get mortgage loan modification. You will find low rates for auto loans right now, so looking into it would be better sooner rather than later. Many interest rates on loan products have been trending downwards. According to the Washington Post, that involves auto loans. Lenders want to lend to re-stimulate their business. Dealers want to sell cars to re-stimulate their business too. Keep in mind though, that loans from a financial institution and a dealership are not quite the same. Loans from a dealership often carry higher rates because they’re trying for making more cash as the middle man between you and also the bank.

That isn’t the full story however

There is, as there always is, a small catch. Financing that large is always tied to your credit rating. The lower your score, the higher the rate. Auto loans for poor credit may not be able to be modified. You may have to just sweat it out, if that’s the case. The very same article in the Washington Post puts high credit score auto loans at 5.7 percent, but those for low credit score borrowers are as high as 18.5 percent. There are also fees and conditions imposed by each individual lender, so make sure you do your homework.

For those who can, it’s a good time to refinance

Well, this is accessible more for people with good credit, instead of for those who aren’t. Also, you want to be careful of who advertises loan modification. The fastest growing type of scam around is the loan modification scheme, so make certain you know who you’re doing business with before you commit or hand over any cash.

Further reading

Washington Post

washingtonpost.com/wp-dyn/content/article/2010/08/28/AR2010082800170.html