BOSTON -- You already may have taken advantage of historically low interest rates to refinance your mortgage.

But have you considered refinancing your car loan?

Kathy Fabian said she thought she already had a great rate -- just 3.69 percent -- when she got a loan through AAA to buy a used Volvo. But in a matter of weeks, she noticed the rate dropped even lower to 2.99 percent.

"I said, hey, I can save myself some money," Fabian said. "Let's see what it's going to involve to refinance the car."

Refinancing a car loan doesn't require a lot of paperwork, especially compared to the stacks generated by a home refinance. And for many car owners, the process is worth it.

For example, take a $22,000 car loan at 6.25 percent for 60 months. If you refinance to 2.99 percent, which is one of the best rates right now, the savings would be $1,960 for the life of the loan.

And cars can be refinanced at any point in time. However, you should only refinance the existing, unpaid balance instead of extending the term of the loan.

Overall, the fees are low. Some lenders might charge a small administrative fee. And if you get the loan from a different bank, you'll have to pay $25 to the Registry of Motor Vehicles to change the title from one lender to another.

Car owners also should ask themselves the following questions:

How much am I paying in interest right now?

How much do I still own on the vehicle?

And how much time is left on my loan?

"Obviously the greater the interest rate differential, the greater the dollar amount, the longer the term outstanding, the greater the potential savings," said Stephen Manty of AAA Southern New England.

Fabian said she was able to refinance to the lower rate quickly and easily, and is now saving money every month.

"Why pay more money to a bank in interest than you have to?" she said.

You can calculate potential savings using this Auto Loan Calculator.

(Recalculate your loan using your existing balance, time left on the loan and a new interest rate.)