Prepayment Penalty Options

• Prepayment penalties may limit refinancing options. If loan options do not allow for prepayment (early payments), refinancing options will be limited because refinancing usually requires the current loan to be paid off before entering a new loan agreement.
  
  

Payoff Balance

• The amount of the loan payoff will drive refinancing options. The payoff is the amount owed before a borrower can get out of the loan. This is not the same as the amount owed on the loan statement. The loan statement does not include any processing or closing fees.
  
  

New Car Rate

• New car rates are the interest rates given for new car loans. Interest rates for car loans are dynamic; that is, they can change daily. The rate of interest is also dependent on the lending organization and your credit score. If the car is less than a year old, some lenders will allow borrowers to refinance at the new car rate, which is slightly lower than a rate for cars that are more than one year old.
  
  

Online Options

• Both Bankrate.com and RateGenius.com are popular online resources for making refinancing arrangements, according to Alexa.com. These online comparison tools serve as a marketplace for financial institutions. Interest rates and interest rate options (i.e., terms, prepayment options, down payment amounts and credit requirements) are listed for comparison and review.
  
  

Cosigner

• Obtaining a cosigner is another way to get a lower rate. Ideally, the cosigner will have a better credit score than the borrower, which will increase the number of rate options available.