Getting the best student loan refinance rate varies from one type of loan to another, lenders interest rates, and payment terms. With these factors you need to compare lenders in order to avoid misinformation which adds to your cost. To have a better rate you also need to find the right lender and the right interest rate, you need to take time in sorting out facts and evidences also. We will discuss some common facts that we need to consider in getting a student loan refinance. Even minor differences in interest rate can help you save substantially during the duration of the loan.
Refinance Early. Refinancing early during the typical six months grace period will really help you save a lot. This allows you to save up to .60% and will last the life of the loan since in most cases it may reduce the loan tern by months or even years. Refinancing does not only extend your repayment terms, it also boost your credit score to remain trustworthy in the future.
Ask About Lender Incentives. Be sure to ask for special lender incentives and other discounts when comparing or shopping for best student loan refinance rates. Some lenders offer auto debit or automatic payments and on-time payments which allows you to earn .25 points to 1 full point off the interest rate while many lenders offer 1% interest rate for making 36 months on-time consecutive payments. Before making any agreements with the lender, verify that all information regarding their incentives, make sure that it is true and correct, since you need to get a better deal than what you have right now.
Re-consolidation Elimination. Prior to July 1st 2006, borrowers could refinance as often as desired, but today all has changed. Borrowers are unable to repeatedly refinance, just to avail with the dropping of interest rates, but can only add additional outstanding loans to a student loan refinance, so better shop carefully to obtain the best possible rate. Consolidating our student loan can save you a great deal of money over time and a chance to lock in at a lower interest rate. Consolidating also offers financial flexibility because payment plans will be based on your current financial standing.
Stay Up to Date. It is good to keep your credit score healthy in all possible ways in order to obtain the best student loan refinance rate that is available.You can get your credit reports from this three major credit bureaus: Equifax, Experian, and Trans Union. Having a good credit score allows you to qualify for better rates.
You can Choose Two. If you have both Federal Student Loan and Private Loans, refinance them separately to get a much lower interest rate. Mixing the two together will result in higher interest rates rather than refinancing separately. Before making a decision, you need to review the requirements and benefits of each program to make sure it provides the best course of action since unlike former years, it is no longer easy to refinance student loans repeatedly.