1. What is the Refi Auto Loan Payment Calculator?

This calculator helps determine your new monthly payment when refinancing an auto loan over a 72-month term. It calculates based on your remaining principal and the new interest rate.

2. How Does the Calculator Work?

The calculator uses the standard loan payment formula:

Where:

• \( newPMT \) — New monthly payment
• \( remainingP \) — Remaining principal balance
• \( newR \) — New monthly interest rate (annual rate ÷ 12)
• 72 — Number of monthly payments (6 years)

Explanation: The formula calculates the fixed payment amount needed to fully amortize the loan over the specified term.

3. Importance of Refinancing Calculation

Details: Calculating your potential new payment helps determine if refinancing makes financial sense by comparing your current payment to the proposed new payment.

4. Using the Calculator

Tips: Enter your remaining loan balance and the new annual interest rate (as a decimal). The calculator will show your estimated new monthly payment for a 72-month term.

5. Frequently Asked Questions (FAQ)

Q1: Why refinance an auto loan?
A: Refinancing can lower your monthly payment, reduce your interest rate, or change your loan term, potentially saving you money.

Q2: What's a good interest rate for refinancing?
A: Rates vary, but generally anything below your current rate could be beneficial. Compare with current market rates.

Q3: Are there fees to refinance?
A: Some lenders charge origination fees. Make sure potential savings outweigh any fees.

Q4: Does refinancing reset my loan term?
A: Yes, refinancing typically starts a new loan term (72 months in this case), which may extend your total repayment period.

Q5: How does credit score affect refinancing?
A: Higher credit scores typically qualify for better interest rates. Check your credit before applying.