How does auto loan refinancing work California

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Calculation example: with a loan amount of USD 100,000 at 10% per annum, for a period of 1 year, the total amount to be repaid will be equal to: USD 105,499.06, with a monthly payment: USD 8791.59. The consequences of not paying the loan are regulated by the legislation of USA.

    What is loan refinancing?

    Loan refinancing (refinancing) is obtaining a new loan from a bank on more favorable terms for full or partial repayment of the previous one. Refinancing can take place both in the former creditor bank, and in any other.

    As a rule, the scheme for on-lending to individuals through another bank is as follows. The borrower issues a loan or credit card online with an instant decision in the new bank, which, in turn, repays the debt in the old one, transferring the amount of the debt there. The new loan may exceed the debt in the previous creditor bank, then the remaining part of the loan is used at the discretion of the borrower. If the loan is collateral, then the collateral is re-registered to another bank.