Only few people really understand time value of money. Keep in mind that longer you pay for a loan, bigger amount of money you actually spend for it. Thus, by end of loan period, you would have paid more money on interest than on principal. This is why auto refinance is important for it is one of few methods that could help you minimize loan costs and maximize your savings.

Who can benefit from Auto Refinance?

Almost anyone with a loan to his name can benefit from auto refinance. Even car buyers with bad credit can obtain auto refinance as a way for them to lower down their APRs. Let's say, for instance, you make an auto refinance loan for $16,500 on a new Honda Accord. At end of six months, you agree to pay off amount at 21% APR. So for a few months, this will be your monthly loan obligation.

Then, you decide to take an auto refinance loan. However, this time, your loan ate is at 6% APR. Your current monthly payment is $446 which gives you total interest charges of $10,283 at end of your loan period. Your auto refinance loan offers you a monthly payment of $319 with total interest charges of $2,639. Thus, by refinancing, you can save up to $7,600.

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Is Home Equity Credit Line Right for You?

One of best sources of credit is your home equity line. This is because you can use value of your home as collateral for a loan without having to sell your property. Initially, home equity credit lines may provide you with large amounts of cash at relatively low interest rates. And, what's more, they also offer tax deductions, which is an advantage you can't find in other types of loans.

However, with home equity loans, your house serves as mortgage collateral. This further means that if you default on your loan, your lender may foreclose on your home. With home equity loans, therefore, your home is at risk if you are late or cannot make your monthly payments. Loans which require you to pay a large final (balloon) payment may lead you to borrow money in order to pay off this current debt. And if you do not qualify for refinancing, your home may be in jeopardy. In addition, because home equity loans give you relatively easy access to cash, you might find yourself borrowing money more freely. Selling your home may not always be option when a situation arises where you can't afford to make anymore payments on your loan. This is because most plans offered require you to pay off your credit line at that time.

Tony Forster has a keen interest in living debt free having been "up to his ears" before I realized the need to take control. I am compiling a useful online resource at http://www.loan4payday.info enabling anyone to find the perfect money managment for them.