- Hi, I'm Jean Chatzky, and this is your SavvyMoney Minute.
- [Announcer] Brought to you by Credit Union of Southern California.
- Mention the word refinance and chances are you think mortgage, also, paperwork, and hassle. Yes, refinancing your mortgage can mean both, but refinancing your car loan? Not necessarily. Consider with a four year loan at 8% interest, a $20,000 car costs you $488 a month. Drop your rate to 4% and your payment is $452. Over the life of your loan, you save over $1,700, and it's easy. Find a less expensive competing lender. You'll pay off your original loan with money you borrow from the new lender but at a lower rate. Your cost? Likely just a small title transfer fee. One tip, credit unions and online lenders often have the best rates, especially if your credit score has improved since you bought the car or if your current loan rate is high. Some lenders will even allow you to take cash out. A bigger loan, yes, but at a lower interest rate. Use that extra cash to pay down higher interest rate debt like a credit card and save big money. I'm Jean Chatzky for SavvyMoney.