FVS (X) Mar 7, 2011:

Lien change To refinance a loan, you must obtain the total payoff amount due to your original lender. You can apply to a bank of your choice either online or in person. Once you obtain an approval, you must provide proof of insurance to your bank. Your new bank, as the vehicle's new lien holder, will contact your old bank to satisfy the loan amount and get the title (if in a title holding state). Otherwise, the lien release is sent to the bank, who notifies the state's Department of Motor Vehicles of the vehicle's new lien and cancellation of the old one. You will receive a new title reflecting the lien change.