APPLY FOR A
TITLE LOAN REFINANCE

If you're having trouble making monthly payments on a title loan, you may want to consider refinancing or at least ask your lender if they're 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 us 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 gives you a new payment term and a payoff amount on your existing 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 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 paid off in full 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, accounting for updated lending terms. By looking at actual numbers, you can get a real-time estimate of how much a refinance could save you.

When using our online calculator, keep in mind that refinancing in most Texas cities is subject to two limits: the loan cannot exceed 70% of your vehicle's resale value or 3% of your gross annual income.

Other Reasons To Consider Refinancing

- 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 secured loans 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, refinancing can save you money by lowering your interest rate or structuring your payments to pay off the loan more quickly. These two factors can significantly affect your monthly payment, so it's essential to understand how each works.

What Interest Rate Should You Expect After Refinancing

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 comparing lenders, focus on the total cost of your loan, not just the monthly payments. 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 are offering a loan that depends solely on your vehicle's equity.

Title Loan Refinancing Versus A Buyout - What's Different

Refinancing differs from a buyout in several ways. With a 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 existing loan, and you will make payments on a 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.

What You Need To Qualify For Refinancing

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.

Just as you needed income verification when you first applied, you'll need it again to qualify for refinancing. 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 qualify for a lower rate today.