Trying to decide the best way to refinance our student loans. I have about $115,000 and my wife about $185,000. We have been approved for the following rates to refinance through SoFi:
5 year: variable 2.14%, fixed 3.5%
7 year: variable 2.44%, fixed 4%
I don't know if we can afford the monthly payments at 5 years, so we'll probably go 7 year repayment. Which plan would you go with?
I know interest rates are historically low, and I can take advantage of the initial low variable rates for the early part of repayment when the principal is highest. I just don't know how likely it is that the rates go up high enough that I'd lose out using the variable rates. I could also hedge my bets and go with fixed for one of ours and variable for the other I suppose.
Thanks!
5 year: variable 2.14%, fixed 3.5%
7 year: variable 2.44%, fixed 4%
I don't know if we can afford the monthly payments at 5 years, so we'll probably go 7 year repayment. Which plan would you go with?
I know interest rates are historically low, and I can take advantage of the initial low variable rates for the early part of repayment when the principal is highest. I just don't know how likely it is that the rates go up high enough that I'd lose out using the variable rates. I could also hedge my bets and go with fixed for one of ours and variable for the other I suppose.
Thanks!
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