While life on the road is everything you hoped for when you bought a recreational vehicle (RV), you may be wondering if you can find a better interest rate or loan term by refinancing. The following questions can help determine whether it makes financial sense to refinance.
Your credit score is an important factor in determining the interest rate you qualify for, so you need to know your credit score to properly evaluate the potential benefits of refinancing.
Generally speaking, a lower credit score results in a higher interest rate. If you need to improve your score, you could focus on a variety of factors that contribute to your credit score, including on-time bill payments, amount of debt load and length of credit history. You may also check one of the major credit bureaus to gauge how your credit score stacks up against national averages.
Be sure to closely read your original loan documents to determine if there are any prepayment penalties should you choose to refinance. Any penalties/costs should be included in your refinancing evaluation.
As part of the refinancing process, there may be additional costs related to any paperwork that needs to be filed with your DMV. Visit your DMV’s website or call to check on any potential fees.
