Best Answer

One should weigh out the risks and benefits of refinancing a car loan before making a decision. Some of the benefits of refinancing could include better interest rates, lower payments, and an improved credit score. Some of the risks may include extending the length of the car loan and incurring penalties for paying the original loan off early.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What are some of the risks and benefits to refinancing one's car loan?
Write your answer...
Still have questions?
magnify glass
Related questions

What does VA streamline refinancing do?

It is a refinance loan that is backed by the government available to veterans with a previous VA loan. The VA streamline refinancing allows veterans to replace their loans with new ones that take advantage of the current low interest rates.

What is the advantage of refinancing ones house?

The major benefits of refinancing one's home is that it can lower the monthly mortgage payment. Similarly, refinancing can enable one to use the extra money on other things, such as renovations or a holiday. Seek advice from a financial expert.

Why would a homeowner consider refinancing their home loan rates?

Occasionally a home owner will consider refinancing ones home loan if the interest rates have dropped substantially. This could save the home owner a lot of money in interest payments. Often a home owner will also consider refinancing to stretch the payments over a longer period of time and therefore reducing the monthly payments.

What are some of the benefits of refinancing a mortgage?

If ones mortgage rates happen to be lower then expected, the monthly payment will actually go down with refinancing a mortgage. If a homeowner is in the position to make a monthly payment that is higher than usual, the homeowner may want to think about switching from a 30-year mortgage to a 15 year mortgage.

What are the benefits ands risks of radiation therapy?

One of the obvious benefits is the cure for whatever you are taking radiation therapy for, eg. cancer. However, it is radiation therapy, so it's not good for your body in general. Some of the risks are fatigue, depression, nausea, hair loss, or damaging normal cells along with abnormal ones.

What are the dangers of refinancing a home mortgage?

There are many dangers of refinancing a home mortgage, one of the biggest ones is the possible loss of your home and going bankrupt. Meaning that one would lose all that they own.

Are there any health benefits to using stainless steel pet bowls instead of ceramic ones?

There exists no health benefits or health risks to using stainless steel pet bowls instead of ceramic ones. With that in mind the choice between the two is entirely up to preference and the few pros and cons that exist between the two.

Where can someone find refinancing rates?

Refinancing rates can be found in several places. First option is to visit a comparision site on the internet. They provide a list of all available options. Second option is to visit a bank and discuss refinancing options. And the last option is to visit ones financial advisor.

What is 'physical benefits'?

Physical benefits are ones that can be measured physiologically

What information does the car loan calculator Canada give?

Car loan calculator Canada can calculate ones car loan payments. One has to enter his/her price, down payment, trade-in value and rate into the Canada car loan calculator and the calculator will calculate ones car loan payments.

If bought a new car a few days ago with a car loan and now you have to leave the country what can you do to get out of the loan?

CALL the lender. they are the ones who can let you "come out" of the loan.

How can I have my student loan forgiven?

One can have a student loan forgiven if one has no money at all to pay or if one joins a program called student loan which basically pays every penny of ones loan.