Many people are familiar with home loan refinancing, yet surprised to learn that they can refinance their car as well.

It’s true! As a matter of fact, nearly any big loan can be refinanced — whether it’s your home or another real estate mortgage…or a car, motorcycle, or boat. And for the same reasons, too: to provide extra cash, ease up a bit on a tight budget, or as part of a larger debt consolidation plan.

As a simple rule of thumb, you might consider refinancing if your car loan is for $7500 or more. Otherwise, the amount that you save may not be worth the time and trouble.

• THE CURRENT RATE IS 4.19%, and your old car loan is almost certainly much higher. Refinancing or consolidating at a lower rate can definitely provide a benefit, in both the long and short term. Short term, you’ll pay less each month (can’t argue with average savings of $500!). Long term, you pay less interest and more towards full ownership!

• if you’d benefit from consolidating, you will get a lower interest rate, as well as simplifying and streamlining your finances –only one bill each month for everything. No more stacks of bills, all at different rates, all due at different times!

• many car loans include a number of extra finance charges that are specific to the lender. Refinancing your auto loan may allow you to eliminate some charges, so that you can pay off the principal even earlier, or reduce the size of your monthly payment even more!

• with the right timing and the right offer, you could get a break from making your car payment — sometimes by as much as 90 days (i.e, as much as three car payments!)

• some lenders can refinance you with a “Cash Out” loan that is higher than the value of the car. That’s extra money in your pocket to cover unexpected expenses, or simply to treat yourself. Keep in mind, however, that this is still part of the loan and therefore must be repaid.

Aside from your home loan, your auto loan is probably one of the biggest monthly bills that you currently pay. If you can get it lower, why wouldn’t you?