Not everyone knows that it’s possible to refinance a settlement loan. In fact, there are times when refinancing will provide quite a few benefits. Before assuming you have the best arrangement possible, it pays to consider these possible advantages. If one or more of them applies to you, it’s time to talk with a company that offers refinancing options.
Lock in Lower Rates and Fees
At the time you secured the settlement loan, the rates and fees associated with it seemed to be fine. After all, everything would be taken care of once the settlement was granted and the obligation to the lender was fulfilled. Your main purpose was to secure the money needed to take care of basic living expenses, medical costs, and other obligations as you waited for the settlement to take place.
Now that some of the pressure is off, revisit the terms and conditions related to your present settlement loan. Is the interest rate really the best you could get? Would a different lender provide an arrangement with fewer fees and charges? When you find a lender who does offer better terms overall and who is willing to refinance the settlement loan, see how quickly the refinancing can be completed. If it’s managed before the settlement actually comes through, you could end up receiving a greater share of the money.
No Additional Application Fees
One of the things that sometimes stops people from exploring refinancing options is having to pay another round of application or other fees. What may surprise you is that not all lenders will charge more fees to refinance the obligation. In other words, you have the possibility of ending up with a better deal without paying anything extra.
Think of what that means if you secured some type of settlement funding to cover current and pending medical expenses. If you find someone who offers better terms for medical expense loans, you can refinance the obligation and not have to absorb any type of additional costs. You still have the money needed to cover your medical needs, and retain more of the settlement once the court makes a decision.
Change the Disbursement Options
Most settlement loan providers offer more than one option for disbursing funds. You can get a lump sum or receive monthly stipends of an agreed upon amount. What happens if you want to change the disbursement method? Some providers are flexible enough to allow a switch. Others will not change the disbursement option after the first one is sent to the debtor.
If your current provider will not change the disbursement plan, a different provider may be willing to refinance the total amount and allow you to change the way the money is received. Better yet, that provider may have provisions for changing the disbursement method at certain intervals. For example, you may have the option of switching from monthly disbursements to a lump sum disbursement at the beginning of each calendar year. That is a nice feature that comes in handy if your personal circumstances change before your personal injury case is finally settled in court.
Retain More of Your Settlement Once It’s Reached
Typically, the responsible party pays the amount ordered by the court and the funds are forwarded to your legal counsel. The lawyer receives his or share for services rendered, then the settlement company receives payment for all funds disbursed. Whatever is left is remitted to you. That remainder is affected by the interest and fees owed to the settlement company.
The bottom line is that if you can refinance the settlement loan and owe less to the lender, you end up with more of the settlement money once your case is completed. Those funds can be used for anything you like.
Are you getting the best terms from your current settlement loan provider? If not, look into
settlement loans refinancing from Casemarkfinancial.com today. Arrange to have a professional compare the specifics of your current loan with what this provider can offer. It won’t take long to determine if refinancing would be to your advantage.