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Overview — Why refinance your auto loan?
Refinancing your existing auto loan can reduce your monthly payment, lower your interest rate, and make loan payments more manageable — especially if your credit has improved since you first financed, or if market rates have changed. At Heritage Credit Union we tailor refinance solutions to your needs: you may refinance to reduce your monthly payment, shorten your term to pay less interest overall, or remove a co-borrower.
Many members benefit from refinancing after life events such as changes in income, the desire to free up monthly cashflow, or after improving their credit profile. Our lending specialists provide a clear comparison between your current loan and the new offer so you can see the total savings, any fees, and the best strategy for your goals.
How refinancing works — simple steps
- Gather your loan details. Collect your current loan statement, payment schedule, remaining balance and payoff amount.
- Check prequalification. Use our online prequal tool — it won’t impact your credit score — to see possible rates and options.
- Choose a refinance option. Select whether you want to lower payments (extend term) or lower total interest (shorten term / get a better APR).
- Apply & verify documents. Submit proof of income, ID, and vehicle information; we handle title transfer and lender payoffs.
- Close & save. Sign electronically, and the new loan replaces the old one — often with immediate monthly savings.
Common refinance objectives
- Lower monthly payment to improve monthly cashflow
- Reduce interest rate to save money over the loan lifespan
- Shorten the term to become debt-free sooner
- Remove or add co-borrowers for credit or personal reasons
- Consolidate multiple auto loans into a single, simpler payment
Who benefits most from refinancing?
Refinancing is a strategic financial tool. It typically helps members who:
- Have improved credit scores since the original loan
- Obtained an auto loan during periods of higher interest rates
- Need to lower monthly payments due to changed income or expenses
- Want to pay off the loan faster by refinancing to a shorter term
- Prefer local underwriting and a personalized lending relationship
If you're unsure whether refinancing is right for you, our loan advisors provide a no-obligation refinance analysis comparing your current loan to potential new terms.
Key advantages — why choose Heritage Credit Union
Lower Payments
Refinance to reduce your monthly outlay and make household budgeting easier.
Competitive Rates
Access member-focused rates that may be lower than your existing lender.
Quick Decisions
Local decisioning and fast underwriting help speed up approvals and payoffs.
Transparent Fees
We show payoff costs and any origination fees up front so there are no surprises.
Refinance Flexibility
Options to adjust term length, change payment date, or modify co-borrowers where applicable.
Dedicated Support
One-on-one guidance through every step: payoff coordination, title transfer, and account setup.
Real Member Example — See the savings
Member example: Sara had a 60-month auto loan at 7.5% APR with a monthly payment of $420. After improving her credit and refinancing to 4.99% APR for 54 months, her monthly payment dropped to $360 — freeing $60/month for other needs and saving hundreds in interest over the new term.
We always present a clear before-and-after comparison so you understand total interest, payoff timing, and any fees that affect net savings.
How to decide — reduce payment vs. reduce interest
When refinancing you usually choose between two objectives:
- Reduce monthly payment: Extending the term lowers your monthly obligation but may increase total interest paid over time.
- Reduce total interest: Shortening the term or lowering the APR reduces total interest but raises the monthly payment.
Our advisors will model both scenarios so you can choose the best financial path for your current and future situation.
Ready to lower your monthly payment?
Start with a no-obligation prequalification to see what rates and terms you may qualify for. Our team will prepare a clear side-by-side comparison and guide you through payoff and closing — making refinancing simple and beneficial.
