Dear EchoBay Expert:

Dear Loyal Reader: First and foremost, order a copy of your credit report to make sure that everything in it is accurate. Since credit problems can equate to a higher interest rate, you're going to want to make sure that your credit report is clean prior to applying for your loan.

If there are errors on your report, contact the credit reporting agencies in order to correct them. Once, your credit report is in order, shop around at your credit union, bank and online. Don't settle for the first lender who quotes you a rate. The best place to find some of the most competitive auto refinance loan rates is online.

The competition is fierce and lenders are willing to compete for your business. In addition to offering competitive auto refinance loan rates, online lenders often will not charge application fees and won't require a down payment.

Some lenders even offer discounts if you apply for your loan online. Whatever you do, don't work with a middleman. You're going to want to work directly with the loan originator in order to avoid paying the costs of a hefty commission.

Dear EchoBay Expert:

Dear Loyal Reader: Many people hear the word refinance and the first thought that comes to mind is paperwork. While this is definitely true with a mortgage refinance, you can refinance your car in a snap! Auto refinance loans are infinitely simpler to complete than mortgage refinance loans mainly because there is considerably less paperwork involved.

Generally, with an auto refinance loan, paperwork includes;
• a limited power of attorney (this allows the lender to transfer the car title from the old lender)
• an odometer statement (this states that the odometer mileage is accurate)
• an authorization for payoff (this gives your lender the authorization to release payoff information)
• an authorization to debit your account (this is only if you choose automatic debit for your payments)

If you choose an online lender, the process simplifies even more and is faster. These documents are typically available the same day you apply for your loan. There are no inspections, appraisals and complicated loan closings either. After your loan has been approved, your loan documents will be forwarded to you for your signature and your payoff could be on the way to your old lender within a day.

Although mortgage refinancing can be a hit to your wallet, there are generally no loan fees associated with auto refinance loans. The only fee you will pay is a state mandated lien holder change fee. This fee can be from $5 to $65 depending on where you live.