I apologize if this is a dumb question.
I am going to refinance my loans at the end of the year. If I go with a variable interest rate and then two years into my payments that variable rate increases above other possible lenders rates, am I able to refinance again with the different company? It seems too simple in my mind that they would allow this because then variable rates would always be a no brainer but I haven't read anywhere that you can't other than the risk of possible early termination fees.
I do not really see a risk because when I graduate my loans:income will be about 1:1. After two years my income should be double my loans so I would be a better candidate for lower interest rates from the refinancing companies (unless the market goes crazy and fixed loans jump up tremendously). I just am not sure if I am missing something really simple or if I am thinking about this incorrectly.
Thank you for your help.
I am going to refinance my loans at the end of the year. If I go with a variable interest rate and then two years into my payments that variable rate increases above other possible lenders rates, am I able to refinance again with the different company? It seems too simple in my mind that they would allow this because then variable rates would always be a no brainer but I haven't read anywhere that you can't other than the risk of possible early termination fees.
I do not really see a risk because when I graduate my loans:income will be about 1:1. After two years my income should be double my loans so I would be a better candidate for lower interest rates from the refinancing companies (unless the market goes crazy and fixed loans jump up tremendously). I just am not sure if I am missing something really simple or if I am thinking about this incorrectly.
Thank you for your help.
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