Save money by refinancing your loans

Some of the most popular reasons to refinance a loan are:

Securing a new, lower interest rate

If the interest rate on your personal loan, for example, was high at the time you applied for it, you may be paying more than is necessary. In the event interest rates have dropped, you may be able to refinance your loan and take advantage of a lower rate, which will, in turn, lower your payments and save you money over the term of the loan. Also, by consolidating your debt in this manner, you may qualify for an even lower interest rate.

Paying off your loan faster

This can be a smart move if you've recently received a raise, finished paying off other debt or come into some money. You can refinance your loan and obtain a new payment schedule, which will allow you to pay the loan off quicker, saving you money in interest over the long run.

Stretching payments out

On the other hand, you may find your finances getting tighter and actually need to reduce your monthly financial obligations. By refinancing the remaining loan, you can lower your monthly payments by selecting a longer term. Bear in mind this will cost you more in interest, but it will reduce the payment each month.