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RefinancingRefinancing

When combined with a current environment of record low rates, this is a ripe time to consider refinancing. 

Whether looking to your existing lender or going out to the market to scout for a better deal, financing options today are is plentiful as ever. In particular, if one has a short-term ARM, or a five-year balloon coming due it makes sense to look at options. It may even be worth it to look at longer term, fixed rate options as well.

If you’re in one of those situations, give AOPA Aviation Finance a call. We specialize in working through the maze of issues to analyze, from transactional cost comparisons to loan processing timing to ferreting out potential, hidden promotions.

There are a lot of variables to consider in refinancing, including but not limited to whether a pre-payment penalty on the current loan exists, and how that penalty may affect the overall transactional costs. It's also important to consider whether one’s existing lender is capable of refinancing on one's terms. Also, will going out to market and researching other lenders prompt one's existing lender to sweeten their deal? 

We’ve occasionally seen cases where a lender will divulge previously unreported programs or promotions to incentivize their clients to keep the refinance in-house. Said incentives sometimes go beyond financial. They might be a procedural advantage in staying with somebody who knows you and knows your credit. The lender might offer a speedy transaction. We’ve seen where the existing lender has offered to close a deal within the week.

With AAF as your advocate, we can make sure your best interests are fully represented. We can help you leverage both the benefits of keeping your loan where it is as well as going out to the overall market to explore the best options out there.

If staying with your existing lender is the best deal for all involved, we’ll advise you of that. Should the opposite hold true, we'll offer you best options. There are times when the existing lender won't be your best bet. For example, some lenders can't do a twenty-year, fixed rate term. That’s where our knowledge of lenders can help you find the bank or financial entity that can make that deal, and at the best rate.

As an example, AAF is working with a member currently who is between partners on a plane. His current partner wants out and he therefore needs financing to buy him out or until he can find another partner. As a result, both partners are looking to refinance the existing loan in order to facilitate their change in needs.  

Bottom line: If you’re looking to refinance and you think you’ve got the best option out there, give us a call. It won't cost you anything, and it’s always worth one extra call to ask, “Did I get the best possible deal?”

Great rates. Great terms. Helpful and responsive reps. Three good reasons to turn to AOPA Aviation Finance when you are buying or refinancing an airplane. If you need a dependable source of financing with people who are on your side, just call 800.62.PLANE (800.627.5263) or click here to request a quote.

Adam Meredith

Adam Meredith

President of AOPA Aviation Finance Company
Adam Meredith, President of AOPA Aviation Finance Company, is an aircraft finance professional with more than 15 years lending, small business management and customer service experience. Adam is a commercial pilot with multi-engine and instrument ratings.
Topics: AOPA Aviation Finance Company, AOPA Products and Services, Ownership

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