refinance student loan consideration

[mjdevito]

Hello to the group

I'm in my 40's and had consolidated my med school student loans back in 2004 to a 30yr 3.25% rate (great at that time). I now have 14 yrs left on the loan (about $55K) at this 3.25% rate. I am considering refinancing but:
can I get a better rate currently? if so, which bank might you suggest?
I would be willing to refi to a 10yr or even a 7/1 arm, for example -- but I do not want my monthly premium to change more than 20% or so (higher), of course, it would be great if the premium could be lower - but not a huge concern either. Ultimately, I am trying to lower the current total interest to be paid on the loan. I am not in a position to just pay it off. right now, nor would I want to do that given I would prefer to invest the savings on the premium (and interest) while also lowering the total interest to paid on the loan.

Thanks

[pierre]

There are plenty of online calculators. And a recommended lender page on this website.

[billy]

I'm sorry but im at a loss at why you'd want to continue to carry student loans for 30 total years, unless you were going for forgiveness. Even then...

[BCBiker]

You can get very low variable rate from earnest but do 5 years max. My current rate is 0.73%. I actually didn’t realize how low it was. I need to borrow more money I guess. lol

[mjdevito]

I'm sorry but im at a loss at why you'd want to continue to carry student loans for 30 total years, unless you were going for forgiveness. Even then...

Surely, not only one way of doing things with one's money. Investing for a better interest return might be more appropriate for some - rather than paying down a loan with a rate that was not too high (3.25% in the past many years was a very low rate).

[mjdevito]

You can get very low variable rate from earnest but do 5 years max. My current rate is 0.73%. I actually didn’t realize how low it was. I need to borrow more money I guess. lol

Ha, thanks! That's pretty darn low indeed. I will look into it for sure. Well done!

[billy]

Surely, not only one way of doing things with one's money. Investing for a better interest return might be more appropriate for some - rather than paying down a loan with a rate that was not too high (3.25% in the past many years was a very low rate).

I'm not denying that mathematically speaking the investing the difference method should win out. I will say though most people do not truly invest ALL of the savings, and instead tend to spend some of it. So there is a behavoiral aspect to consider also. There's a good reason many financially independent people abhor debt. Plus its an extra "have to" monthly payment, that for me seems like a noose over 30 years. But to each their own. I'm glad I'm on track to pay off my student loan debt by december, even if it at 1.95%. I consider having no debt as a mini FI stage, since after my loans are paid off I can then cover all my expenses and still save towards retirement while working per diem once a week if I choose to. That in turn gives me the opportunity to tell a job to shove it if it ever gets unbearable.
There are many roads to Dublin, we are just choosing 2 different routes. Good luck in yours.

[Tim]

Ha, thanks! That's pretty darn low indeed. I will look into it for sure. Well done!

https://www.whitecoatinvestor.com/st...n-refinancing/
Variable seems 1.99% best and around 3% for fixed.
.73% is probably a dream now.

[mjdevito]

Yes... I quickly realized that when I took a look Oh well, 2% may still be worth the switch from 3.25% - as it will allow me to pay it down a bit faster at a slightly lower rate and still have some $ to invest to 'compensate' for the lost interest. thanks.

[JB14]

We refinanced one of my wife's loans at common bond. We did a 5/1 ARM back in February, and got a rate of 2.02% for a $66k loan. Then Covid-19 hit, and the rate started dropping. We are now at 0.25%! I'm considering what to do with the other ~$100k she has in federal (fixed 2.625%). With the Fed saying rates will be near 0 through 2023, maybe I should refi those as well?

Only issue with common bond is that we never got the $300 referral bonus by using the link on WCI. They keep claiming that they will send it to my wife's paypal account, which she doesn't even have. Sort of shady there, but I can't complain with the great rate, so buyer beware.

~~~~~~~~~~UPDATE, Sept 21, 2020, CommonBond reached out to me after contacting WCI and is working to get the referral bonus sent this week.~~~~~~~~~~~~~~~~