Is USAA Good for Refinancing Your Auto Loan or Mortgage?

USAA is well known for providing financial services to military members, veterans, and their families. But is it a good option if you want to refinance your auto loan or mortgage? In this in-depth review, we’ll look at the pros and cons of using USAA for refinancing.

A Brief Overview of USAA

USAA is a financial services company that primarily serves military personnel, veterans, and their families. It offers a wide range of products including banking, investing, insurance, and loans. USAA has over 13 million members.

USAA is best known for its excellent customer service and competitive rates on products like auto and home insurance for military members. However, its banking and lending services are open to all qualifying members regardless of military status.

So if you’re eligible to join USAA (based on your military service or relationship to a USAA member), it’s an option worth considering for refinancing needs.

What Types of Refinancing Does USAA Offer?

USAA offers refinancing options for both auto loans and mortgages. Here’s an overview of what’s available:

Auto Loan Refinancing

USAA allows you to refinance any existing car loan with them, whether you originally financed with USAA or another lender. Key features include:

• Rates as low as X.XX% APR with autopay discount
• No age or mileage restrictions on vehicles
• Terms up to 84 months
• Option for once monthly, twice monthly, or biweekly payments

They also permit refinancing auto loans that are “upside down” (owe more than the car is worth). USAA will assess the loan-to-value based on their valuation of your vehicle.

Mortgage Refinancing

USAA offers a full suite of mortgage refinancing products including:

• Conventional rate/term refinancing
• Cash-out refinancing
• Streamlined VA refinancing (IRRRL)
• VA cash-out refinancing
• Jumbo loan refinancing

They offer fixed rate and adjustable rate mortgages with competitive rates. USAA also allows you to refinance even if you have very little home equity or an underwater mortgage.

Pros of Refinancing with USAA

Here are some of the biggest advantages of refinancing your auto loan or mortgage with USAA:

Excellent rates and low fees for military borrowers – As a military-focused lender, USAA consistently offers some of the best rates available to service members and veterans. Mortgage closing costs are also lower than industry averages in many cases.

Flexible terms for auto refinancing – The option for longer terms on auto refis (up to 84 months) allows more flexibility in lowering payments Their policy on refinancing upside down loans is more lenient than some other lenders too

Strong history with VA loans – USAA is one of the top VA mortgage lenders by volume So they have lots of expertise with the VA refinancing process in particular

Member benefits and discounts – By refinancing with USAA, you get access to discounts on other USAA products, like insurance and investment accounts. Military members also appreciate their commitment to service.

Excellent customer service reputation – Member satisfaction scores for USAA are consistently among the highest for financial institutions. Their customer service team is knowledgeable and responsive.

Convenience services – USAA offers conveniences like applying for loans entirely online and accessing documents via their mobile app.

Cons of Refinancing with USAA

USAA refinancing does come with a few potential drawbacks:

Membership eligibility limitations – USAA products are only available to military members, veterans, and their eligible family members. Refinancing options are limited for civilians.

Slightly higher average VA mortgage rates – Though still competitive, USAA’s VA mortgage rates typically lag slightly behind top VA lenders like Veterans United Home Loans.

No home equity loan/HELOC options – USAA does not offer home equity lines of credit or home equity loans. This isn’t ideal if you want to leverage home equity for other financial goals.

Can’t retain SCRA benefits when refinancing – Refinancing a loan with SCRA benefits would cause you to lose those benefits on that loan. This may impact some active duty service members.

No branch locations – As an online lender, USAA does not have physical branch locations you can visit in person for assistance.

Tips for Refinancing with USAA

If you’ve decided USAA is a good fit for your refinancing needs, here are some tips to make the process smooth:

• Get pre-qualified to see accurate rate quotes and verify eligibility.

• Have your current loan details, income/employment details, and credit info ready when you apply.

• Compare multiple lender rate quotes before committing. USAA matches some competitor offers.

• Opt for auto pay discounts, and consider a shorter term to get the best rates.

• Take advantage of USAA’s mobile app and online tools to expedite the refinancing process.

• Ask about discounts that may be available if you have other accounts/policies with USAA.

• Set up an account on USAA’s member portal before applying for easy access to documents.

The Bottom Line – Is USAA Good for Refinancing?

For eligible military borrowers, USAA can be an excellent choice for auto loan and mortgage refinancing. Their rates are very competitive, especially for VA loans. USAA also offers flexible terms on their auto refinancing and has fantastic customer service.

Just be aware that membership is limited, so USAA refinancing won’t be an option for everyone. And you may find slightly lower mortgage rates from other top VA lenders. But if you qualify to join USAA, they are absolutely worth considering.