A family usually has at least one vehicle advance/car loan. In some families they will have two of these advances/car loans. When you are hoping to free up a little income and make your life a little easier there are a few ways you can help yourself. When you consolidate car loans you can do so with a home equity loan, refinancing, or seeing if you can extend the better of the two vehicle advancements to include the full payment of the second vehicle advance and pay it off.
Letís look at this last option first. Some lenders will allow you to extend a car loan depending on how it was set up in the first place. You can extend the vehicle advance for the amount owed on the second vehicle. The amount will be sent to your first lender as a payoff, which means you now have one vehicle advance and one interest rate. This will increase the car payment, but it should reduce the overall amount you have been paying per month.
If you canít consolidate car loans with one lender you can have a different type of advance. Refinancing a mortgage can include the amount owed on a vehicle advance. Vehicle advances are just like any other advance, when you have the income to pay them off you are able rid yourself of the payment. If you can refinance your mortgage for a lower payment to include the vehicle advance, you are hoping to get a lower interest rate and have a lower overall monthly payment.
A home equity advance will work the same way. You can include the car loans into the home equity loan and have them paid off. This essentially takes away the vehicle advance to help you with your monthly expenses, and hopefully offer a lower interest rate.
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