Mortgage loan refinancing involves replacing your existing student loans with a new loan from a private lender, often at a lower interest rate. Refinancing can save money on student loan payments and pay off debt faster.
Estimate how much you can save
Enter the details of your existing loan.
Pick a new APR and repayment term.
Here's what you could save:
You would pay this much more each month:
But you'll pay this much more interest:
How your current loan and refinanced loan compare
Your current loan:
Total interest paid:
Your refinanced loan:
Total interest paid:
Here's how the process works:
- Research lenders: Shop around and compare offers from different lenders to find the best interest rate and terms for your situation.
- Gather documents: You'll need to provide information about your current loans, as well as your financial situation and credit history.
- Apply: Submit an application to the lender of your choice. If you are approved, the lender will send you a refinancing offer outlining the terms of the new loan.
- Accept the offer: If you decide to proceed with the refinancing, you'll need to sign and return the offer documents.
- Wait for the new loan to be disbursed: Once the lender receives the signed documents, they will disburse the new loan to pay off your old loans.
- Start making payments: You'll begin making payments on the new loan according to the terms of the refinancing agreement.
As you can see, deciding to refinance your mortgage will largely depend on your situation. You must make a clear-headed decision that makes sense over the long run.
With mortgage rates today being pretty low, it can often generate good savings if you refinance. If you can comfortably afford to pay higher monthly payments, refinancing to shorten the period of your mortgage is another no-brainer.
Ultimately, the advice of professionals is usually your best strategy before you pull the trigger and commit to refinancing. This way you can compare the various refinancing offers and read reviews of each company. As a result, you will not be overlooking any potentially important aspects of a situation.