Hi FWers, long time reader. Saved/made a good amount of money from this forum, so appreciate the advice. Haven't seen a decent student loan refinance topic, and this could save me $1K-$2K so thought I'd get some advice and share.
Currently have Federal Student Loans averaging 5.9% fixed, so seems like a no-brainer for a refinance, whichever option I choose. I'm comfortable giving up loan benefits (IBR, in-school deferment etc...) given my current situation -- finished up a PhD, no chance I'm headed back to school for my own sanity at the least.
Best refinance loan options I've gotten are below, so I wanted to share and see if others have advice on how to pick -- lower payment long term to use $s elsewhere, or if paying off earlier is better since the interest rates are rock-bottom.
Repayment Term (Months)
RothIRA at >$60K
401K at >$30K
Cash savings >$30K (emergency fund and savings for down payment)
Rent but looking to buy in the next 12 months -- this could impact my option
Averaging a net of >$3K/month, half in cash, half in retirement vehicles
Any advice from experienced FWers?
If it helps others, my best rates have been from SoFi and Earnest, but YMMV.
jerosen said: How much will a house cost you? Not sure that would impact things.
You should go for the low interest refinance loan. Going to be higher due to a high cost of living metro, $350K-$400K for an old build 2BR/1BA (almost everything is old in this metro) and will be splitting the monthly payments with my significant other. Not going to make-or-break the bank, but taking a longer student loan refinance term and saving an extra $300/mo on the front end towards inevitable home maintenance is tempting.
You make too much to ever get any govt forgiveness cheddar, just private refinance with someone like commonbond or sofi and pay it off. Id go with the 60 month. $400/mo when youre pulling 100k is chump change.
I refi'd about 130k into a 1.9% 60 month at commonbond and am smashing 2k/month into them.
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