If you’re looking for a way to make a real difference in your financial life, refinancing your loans could be helpful.
The word refinance is often associated with mortgages, but it’s not the only loan that can be refinanced. While refinancing helps people give their mortgages a makeover, it can also help individuals with any kind of loan; from your student loans all the way to your car loan. Do you know how refinancing can help you?
Refinancing Different Loans
What is refinancing?
In essence, refinancing means you’re replacing one kind of loan with another loan. You may refinance a loan to get a better interest rate or reduce your monthly payments.
What do you need to know about rate-and-term refinancing?
If you want to get a better interest rate or change the loan term, consider rate-and-term refinancing. This can be beneficial for borrowers if you initially took out your loan when interest rates were much higher than they are today. Additionally, it can help you change the monthly payment if you need to.
Can it help renters?
You can refinance almost any kind of debt, not just mortgages. Things like your student loans, for example, can be refinanced. If you rent your property and have student or car loans, you can refinance those to loosen your budget and have more cash for yourself.
Are there any downsides?
Good rarely comes into our life without a catch. Refinancing doesn’t guarantee that you’ll save money or even help you manage your repayments. Your loans have terms and conditions that may become void if you refinance. Some federal loans, like your student loans, are eligible for benefits like loan forgiveness or payment programs that you could be exempted from if you choose to refinance.
A refinance can help you get your financial life on the right track. Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you.