4 Most Common Myths About Loan Refinancing

Loan Refinancing Helps Employees Take Care Of Their Finances, here is how:

Knowing common loan refinancing myths can help you better understand how a USA employee loan program can help you take care of high-interest debts. Loan refinancing can help employees repay outstanding and high-interest debts by getting a low-cost loan. However, many myths are stopping some from giving it a try.

 Loan Refinancing Helps Employees Take Care Of Their Finances, here is how:

Knowing common loan refinancing myths can help you better understand how a USA employee loan program can help you take care of high-interest debts. 

What It Is?

Generally, refinancing refers to the act of taking out a loan to pay off the existing debt. With this, you can get lower interest rates or reduce the amount of repayment. Additionally, you can use it to get longer-term loans with more affordable monthly payments.

Borrowers often use low-cost loans to pay for high-interest debts, such as mortgages, auto loans, and student loans. For instance, homeowners who refinanced their first-lien mortgage in the last quarter of last year lowered their rate by more than 1.25 percentage points.

 

Common Myths

Refinancing can help you save money. So, don’t let any myths stop you from giving it a try. Here are four of the most common myths about loan refinancing you should watch out for:

 

Myth #1: People with low credit scores will not be approved.

While many lenders consider credit scores to determine whether a borrower’s application will be approved or not, it is not the only factor. So, you may still get approval despite not having a good credit score.

 

Myth #2: Getting a quote can affect your credit score.

Contrary to what some people may think, getting a loan refinancing quote may not affect your credit score, as some lenders only conduct a soft credit check when applying. Our low-cost loans for employees do not impact your FICO score. 

 

Myth #3: There are a lot of fees.

This is not true. Loan refinancing will help you take care of your outstanding debt. It will not give you more expenses. You can even find lenders, such as us, that do not charge prepayment fees. 

 

Myth #4: It takes a long time.

No, loan refinancing is not time-consuming. In fact, the process can be fast as long as you complete the requirements. Lenders typically offer a hassle-free and fast approval process. Our loan products even offer same-day funding for qualified borrowers. 

 

How to Refinance your Loan?

If you are thinking of refinancing a loan, you have to make sure you understand your options. Examine the specifications and terms of your current agreement. Check the amount that you are paying. Find out if there is a prepayment penalty on your loan.

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