Refinance Your Car Title Loan In Texas
If you're having trouble making monthly payments on a title loan, you may want to consider refinancing, or at least see if your lender is willing to lower your interest rate. By refinancing your loan, you should be able to reduce the monthly payments and get a more manageable APR. A title loan refinance can be a lifesaver for someone behind on payments and facing the risk of vehicle repossession.
At Texas Title Loans, we offer pre-approval for refinancing options for qualified customers in Texas. Not only can we help reduce your APR, but we can also possibly get you a more favorable payoff term. In Texas cities that follow Unified Ordinances, we can help you refinance your title loan into a structured plan where 25% of each payment goes toward your principal balance, with your loan fully repaid in 4 months. Call Texas Title Loans at 844-243-3195 to see how much faster you can pay off your loan by refinancing.
What To Know About A Title Loan Refinance
Refinancing a car title loan gives you a new payment term and a loan payoff amount for your existing title loan. The new lender pays off the current balance, and you get new monthly payments and hopefully a lower interest rate. Refinancing is available to qualified Texas applicants with an existing title loan. Your original lender may not be happy if you're looking to pay off the loan immediately. But there's not much they can do if you sign a contract with no pre-payment penalties and find a lender willing to buy out your existing loan.
Sometimes, you can keep your original loan servicing company by working with them to reduce the interest rate or stretch out the payment term. Instead of simply extending your payment term so you can refinance and pay more in the long run, a compliant refinancing option allows you to pay off your loan quickly. By lowering your APR and applying the 25% principal reduction rule with your refinance, you're able to save money each month as your title loan balance is significantly reduced.
Why Would I Refinance My Vehicle Title Loan?
You might want to consider refinancing your title loan for several reasons. The most common cause is to save money by lowering your interest rate and ensuring your monthly payments actually reduce your loan balance. With a compliant refinancing plan, your title loan can be completely paid off in 4 months. This can help you free up some extra cash each month to better afford other expenses. We recommend that anyone considering a refi start with our car title loan calculator to see exactly how much they can save with a new lender, taking into account the updated lending terms. By looking at actual numbers, you can get a real-time estimate of the value of a refinance title loan.
When using our online calculator, keep in mind that a legal title loan refinancing in most Texas cities must meet 2 limits: the title loan cannot exceed 70% of your vehicle's resale value or 3% of your gross annual income.
Other Reasons To Apply For A Refinance Title Loan
- To avoid defaulting on your loan. This is the #1 reason people in Texas are looking for a title loan refi. Borrowers fall behind for various reasons, and it makes sense to get back on track with a new lending arrangement.
- To move on from high interest rates. Did you know that interest rates on a bad-credit title loan can be very high? Once you've made on-time payments, you can work with a new finance lender and get an APR or payment term that fits your budget.
- To get a more favorable repayment term. Perhaps you want more time to repay the loan, or you're looking for a lower monthly payment. Refinancing can help you structure your monthly payments to fit your budget and get you out of debt sooner.
In many cases, an online title loan refinance can save you money by lowering your interest rate or structuring your payments to pay off the loan quicker. These two factors can significantly affect your monthly payment, so it's essential to understand how each works.
What Interest Rate To Expect With An Auto Title Loan Refinance In Texas
When refinancing an existing title loan, the APR can vary widely based on the lending terms, borrower qualifications, and the vehicle's current value. The interest rate for a title loan refinance should always be lower than what you have with your current lender. That means you must shop for the best financing rates and find a lender that won't hit you with high fees and other charges. When looking for a company to refinance a car title loan, you should look for the exact requirements and hope to save money in the long run. Yes, even after refinancing, these rates may seem high compared to other loans, which depend on your credit score. But remember, your new lender is still taking on risk as they're likely not checking your credit score and offering a loan that depends solely on the equity from your vehicle.
Title Loan Refinancing Versus A Buyout - What's Different
Refinancing a title loan differs from a title loan buyout in several ways. First, with a title loan refinance, you're simply taking out a new loan to pay off your old title loan. When you work with a Texas company that buys out your current title loan, they will pay off your old title loan, and you will make payments on the new loan under the buyout terms. Another difference is that refinancing can result in a lower interest rate or a shorter payoff term. With a buyout, you can get all new terms and a brand new loan offer from a different lender.
How To Quickly Qualify For Title Loan Refinance In Texas
You'll need significant equity in your vehicle to qualify for title loan refinancing in Texas. For a successful buyout or refinance, your current balance should not exceed 70% of the car's current resale value.
Like when you first applied for a title loan, you need proof of income to qualify for a title loan refinance. This could be from a job, savings account, bank statements, or pay stubs.
You should have no trouble qualifying for a refinance with Texas Title Loans if you meet these requirements. Apply online or call 844-243-3195 to see if you can reduce the interest rate on your auto title loan today!