What Does Refinancing Mean?
Refinancing is the process of transferring debt from high interest rate loans to lower rate loans. If you have debt with a high interest rate, replacing that debt with a lower interest rate can lower your monthly payment.
Refinancing can also shift out the timeline of your loan so that you’re paying back a loan over a longer period of time, which can help you better afford your payments—and come as a huge relief if you’re in a tight financial situation.
There are many other times when it just makes sense to refinance a loan:
- You have a better credit score now and will likely get a better interest rate
- You want to switch your rate type from an unpredictable variable rate to a fixed rate you can count on
- You’re not making any progress paying off a high interest rate credit card
- You want to avoid a balloon payment at the end of a loan repayment period
- You’d like to pay off a loan faster
- Your income decreased, and you’re looking for ways to save money
How to Refinance Your Personal Loan
When you refinance a loan, you’ll apply for a new personal loan. You can do this with your existing lender, or you can choose a new lender that offers lower interest rates and better terms. You’ll use the new loan to pay off the old loan, and then you’ll begin making payments on the new loan.
Need to Refinance? Get Approved for a Personal Loan Today.
At United Teletech Financial, we can help you avoid high interest rates by refinancing your loans. To get started, apply online. You can also call us at 866-462-5532 to talk with us about your options.
Apr=Annual Percentage Rate. Rates include a 0.25% discount for electronic payment from a United Teletech checking account. Max loan amount = $35,000.