Are you looking for the lowest student loan refinance interest rates ? Are you aware that interest rates on student loans are at historic lows? Student loan interest rates have been on a steady decline for the past couple of years. Student loan interest rates are not expected to fall any further, which leaves student loan borrowers at risk of over-paying thousands of dollars in interest charges when refinancing their student loans.
If you qualify for an ideal interest rate, student loans can be a very cost-effective, high return investment for your money and time. Ready to find out how to secure the lowest student loan refinance rates? Here’s what you should know about common student loan refinancing points that affect your monthly payment and what you could do to obtain the best deal. Armed with this information, you will be able to find the monthly payments you can afford to make and get that low interest rate you have been seeking.
One common point that affects your monthly payment is your credit rating. There are two parts to your credit score – one is your FICO score, and the other is your common bond rating. The common bond rating takes into account whether you have on-time payments and your financial responsibility as well as your history of borrowings and debt. A higher commonbond score will mean a lower interest rate, but this means a potentially higher monthly payment if you need to finance a large purchase such as a home or a vehicle.
Student loan debt consolidation offers two main types of refinance options: Personal Line of Credit and Secured Loan Refinancing. The Personal Line of Credit refinance is for students with good credit and low interest rates. You borrow money from either your credit card or a personal loan. You pay off the loan once the original term has ended, and then you start all over with a new loan. The interest rates on this type of loan are often adjustable, which means that they may increase from time to time. If you have good credit and are planning to go for this option, it is probably best to apply for a personal secured loan, which has similar terms to a personal line of credit, but has lower interest rates and penalties for early payments and defaulting.
Secured loan terms are generally a little more expensive than those offered by the personal line of credit, but they offer some advantages over private lender refinance loans. A secured loan is less risky for the lender, so he charges a lower interest rate for the same amount of money. He also may charge a slightly higher initial application fee, but this will be refunded when the loan is fully paid off. If you have good credit, you will have little difficulty securing a competitive rate and will also have few if any restrictions, so you may be able to obtain the lowest student loan refinance rates possible.
Private lenders also offer refinanced mortgages at the lowest rate around. The loans they offer are similar to those offered by banks, including fixed and adjustable interest rates. Most private lenders now offer online applications, which makes the process easier and quicker. One advantage to applying for your private loan online is that it makes it easier to compare different offers and choose the one that works the best for you. The biggest drawback to applying for refinanced financing online is that the application fee is often waived or reduced, as well as the interest rate, so you won’t have to pay a lot out of pocket. You do, however, have to provide all pertinent financial information, including income information.
Refinancing allows you to pay off your existing loans and consolidate them into one easy payment. Some lenders, like Money Mart, offer cash back rewards. For example, when you use their Simple Cash Back option, you will get paid cash back up to $7500, in addition to the interest you will pay on your new loan. Cash back programs are becoming increasingly popular as many people are working hard to save money.
Before you decide on which type of student loan refinance to use, you should consider how much debt you have and how much you plan to borrow. You can also research and compare rates and terms on refinanced mortgages through websites dedicated to helping consumers like you to find the right deal on student loans. If you’re thinking of applying for a refinance, talk to your current lender first, since they may offer a lower rate or terms than other lenders. Finally, be sure to keep up with news and updates about interest rates and loan programs for federal and private student loans. Hopefully, you would be able to secure the lowest student loan refinance rates.