My current loan is with Navient at 6.626%. I applied throug DCU's campus door and was apprioved for 5%-6% fixed (5 year to 15 year terms) and 3.5 to 5% variable (5-15 year)
the 3.5% looks appealing but payments are about 2x as much as now, which I can swing. I dont want this payment to jump up in the coming years.
Or should I just stick with Navient and pay more to the principal which always seems to be a pain in the ass since they apply extra payment to the front of the loan.
What term are you thinking about taking on? While we can't predict the future, it's safe to assume that rates will continue to rise. We just had a rate hike at the beginning of the last two years. Interest rates have stayed at historic lows for many years, and it's unlikely for them to stay at such a low level. If you're planning on only taking on a 5 year term, then I'd say the variable rate may be an ok option. But if you're going for the 10 or 15, I'd go with the fixed rate. I'd definitely refinance, because it will save you money over what you're paying now.
Starting Score: 515