Hello everyone!
I'm not sure if this is in the right place, but I figured I'd try it out!
There's been a lot of talk about the recent fed rate cut and future possible cuts. I am not too educated on the effects of what the fed rate does or how the economy influences the decision to cut/increase it.
I am wondering what effects it will have on my variable rate student loan, which has a base interest rate of 6.37%, currently at 5.91%.
I'm understanding that my rate will decrease with the fed rate cut and with any future cuts, but that it will also increase with any increases. I am way too fearful of a significant increase, although I'm too uneducated on what may influence an increase.
Would it be a good time to refinance with a fixed rate at this time? Should I wait a month until there is another cut? I was quoted a 4.57%-4.87 fixed rate for 10 years through multiple lenders.
I don't want to put a hit on my score and AAoA by refinancing, but I am also fearful of an interest rate increase that puts my payment too high.
Any suggestions would be greatly appreciated!!!
