It’s been almost 5 years since I bought my house. Crazy, huh?
A lot has changed in 5 years. I painted almost every room in the house—some twice. I learned the value of DIY and remodeled both bathrooms in the house. Yes, a lot has gone down in that house over 5 years.
But there is one thing that went down that was not visible to me. Home mortgage rates dropped. In fact, they dropped significantly below my rate. So I evaluated my situation and found that I could be saving a bunch of money if I refinanced. So I did.
A lot has probably changed since you borrowed your first student loan. You’ve got a ton of knowledge that you didn’t have when you started college. You may have graduated and are employed at your first job. You may even be a couple years into repaying your student loans.
Something that you can’t see might have changed as well: your credit. If your credit situation has improved, you may want to consider refinancing your private student loans. Technically it’s a consolidation loan, but you can equate the process to refinancing another type of credit.
A private consolidations loan lets you pay off one or more loans with a new loan. That new loan has a new interest rate and terms. And you can still use a cosigner if you want to try for better terms.
For me, refinancing my mortgage meant saving about $100 every month! Have any of you consolidated your loans to get a lower interest rate or better terms? Tell us about it.